Awesome Clothing had the following inventory at December 31, 2016:
A. Determine ending inventory by applying the lower of cost or market rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
B. Which of the LCM procedures from requirement A results in the lowest net income for 2016? Explain.

Question

Awesome Clothing had the following inventory at December 31, 2016:
  A. Determine ending inventory by applying the lower of cost or market rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
B. Which of the LCM procedures from requirement A results in the lowest net income for 2016? Explain.

Quizplus · Accepted Answer

The Answer of Awesome Clothing had the following inventory at December 31, 2016:
  A. Determine ending inventory by applying the lower of cost or market rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
B. Which of the LCM procedures from requirement A results in the lowest net income for 2016? Explain.

Awesome Clothing Had the Following Inventory at December 31, 2016