Information for Q-mart appears in the following table. Calculate the reported cost of inventory when LCM is applied to individual items of inventor Item & Units & }(l) Cost Unit & Market/Total Unit & Total Cost & Market & to units? Bikes: & & & & & & Bike A & 10 & 50 & 52 & 500 & 520 & Bike B & 20 & 30 & 28 & 600 & 560 & Scooters: & & & & & & Scooter A & 10 & 10 & 9 & 100 & 90 & Scooter B & 25 & 20 & 18 & 500 & 450 & Totals & & & & 1,700 & 1,620 & 1,540 is LCM inventory. 1,700 is LCM inventory. 1,620 is LCM inventory. 1,600 is LCM inventory.

Question

Information for Q-mart appears in the following table. Calculate the reported cost of inventory when LCM is applied to individual items of inventor Item & Units & }(l) Cost Unit & Market/Total Unit & Total Cost & Market & to units? Bikes: & & & & & & Bike A & 10 & 50 & 52 & 500 & 520 & Bike B & 20 & 30 & 28 & 600 & 560 & Scooters: & & & & & & Scooter A & 10 & 10 & 9 & 100 & 90 & Scooter B & 25 & 20 & 18 & 500 & 450 & Totals & & & & 1,700 & 1,620 & 1,540 is LCM inventory. 1,700 is LCM inventory. 1,620 is LCM inventory. 1,600 is LCM inventory.

Answer 1

### $1,540 is LCM inventory.

Answer 2

## Step1: Identify cost and market value for each item### For each item, compare the cost per unit with the market value per unit.## Step2: Apply LCM to individual items### For each item, use the lower of cost or market value per unit to calculate the total value.## Step3: Calculate total LCM inventory value### Sum the LCM values for all items to get the total LCM inventory value.

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