A physical inventory of Helmke Company taken at December 31 reveals the following.
A physical inventory of Helmke Company taken at December 31 reveals the following.
Per Unit
Item
Units
Cost
Market
Audio equipment
Receivers
335
$90
$98
CD players
250
111
100
MP3 players
316
86
95
Speakers
194
52
41
Video equipment
Handheld LCDs
470
150
125
VCRs
281
93
84
Camcorders
202
310
322
Car audio equipment
Satellite radios
175
70
84
CD/MP3 radios
160
97
105
Required
1. Calculate the lower of cost or market for the inventory applied separately to each item.
2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.
