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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.

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.

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Answer

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NormanProfessional · Tutor for 6 years

Answer

### $1,540 is LCM inventory.

Explain

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