Question 6.3: A company has the following products in its ending inventory...

Fundamental Accounting Principles

A company has the following products in its ending inventory, along with cost and market values.
(a) Compute the lower of cost or market for its inventory when applied separately to each product. (b) If the market amount is less than the recorded cost of the inventory, then record the December 31 LCM adjustment to the Merchandise Inventory account.

	Units	Cost per Unit	Market per Unit
Road bikes . . . . . . . . . . . . . .	5	$ 1,000	$800
Mountain bikes . . . . . . . . . .	4	500	600
Town bikes . . . . . . . . . . . . .	10	400	450

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