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Problem 6-5A Lower of cost or market P2 A physical inventory of Liverpool Company taken...

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Accounting

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Problem 6-5A Lower of cost or market P2 A physical inventory of Liverpool Company taken at December 31 reveals the following. Item Units Cost per Unit Market per Unit 345 $ 90 $08 Car audio equipment Speakers Stereos Amplifiers Subwoofers 100 260 326 204 95 86 52 Security equipment Alarms 480 150 125 Locks 93 Cameras 212 310 322 47 Binocular equipment Tripods Stabilizers 185 170 Required 1. Compute the lower of cost or market for the inventory applied separately to each item. Check (1) $273,054 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account

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