70.2K

Verified Solution

Link Copied!

home stop sells two product categories, furniture and accessories. information pertain to its 2021 year end inventory is as follows - Need help with #2 assuming write downs are common for home stop record any necessary year end adjusment amounts for each of the lcm applications in requirement 1

Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Per Unit Cost Quantity Market Inventory, by Product Category Furniture: Chairs Desks Tables Accessories: Rugs Lamps 40 79 80 $ 44 92 103 $ 50 77 111 40 20 79 41 67 37 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming inventory write downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. (a) Individual products (b) Product categories (c) Total inventory

Answer & Explanation Solved by verified expert

See Answer