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  • Accounting Inventories LCM

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    Aditya Darmawan
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    The document is an inventory valuation worksheet showing the quantity, cost, market price, total cost, and total market value for 4 inventory items (A, B, C, D). It calculates that applying lower-of-cost-or-market (LCM) valuation results in the total inventory value decreasing by $450 compared to sole cost valuation. It also shows an example balance sheet listing inventory valued at LCM under current assets.

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    Accounting Inventories

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    The document is an inventory valuation worksheet showing the quantity, cost, market price, total cost, and total market value for 4 inventory items (A, B, C, D). It calculates that applying lower-of-cost-or-market (LCM) valuation results in the total inventory value decreasing by $450 compared to sole cost valuation. It also shows an example balance sheet listing inventory valued at LCM under current assets.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
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    4 views2 pages

    Accounting Inventories LCM

    Uploaded by

    Aditya Darmawan
    The document is an inventory valuation worksheet showing the quantity, cost, market price, total cost, and total market value for 4 inventory items (A, B, C, D). It calculates that applying lower-of-cost-or-market (LCM) valuation results in the total inventory value decreasing by $450 compared to sole cost valuation. It also shows an example balance sheet listing inventory valued at LCM under current assets.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    $ 3,800

    2,700
    4,650
    3,920
    Total $15.520 $15.472 $15.070

    Penilaian Persediaan Lower-of-Cost-
    or-Market (LCM)
    A 400 $10,25 $ 9,50 $ 4.100 $ 3.800
    B 120 22,50 24,10 2.700 2.892
    C 600 8,00 7,75 4.800 4.650
    D 280 14,00 14,75 3.920 4.130

    Unit Unit
    Inventory Cost Market Total Total
    Item Quantity Price Price Cost Market LCM
    Penurunan pasar berdasarkan masing-masing barang
    ($15.520 $15.070) = $450
    Assets
    Current assets:
    Cash $ 19 400 00
    Accounts receivable $80 000 00
    Less allowance for
    doubtful accounts 3 000 00 77 000 00
    Merchandise inventory
    at lower of cost (first-in,
    first-out method) or market 216 300 00
    Metro-Arts
    Balance Sheet
    December 31, 2007
    Penyajian Barang Dagang di Neraca

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