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.

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