Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2018 year-...
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Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2018 year- end inventory is as follows: Per Unit Inventory, by Product Category Quantity Cost Market Furniture: Chairs Desks Tables $32 80 91 5e 40 5e $38 65 Accessories 80 30 67 29 Rugs Lamps 25 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 that the company reports an inventory write-down as a line item in the income statement, for each of the LCM applications determine the amount of the loss
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