g Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, by Product Category Quantity Per Unit Cost Market Furniture: Chairs 50 $ 28 $ 34 Desks 80 76 61 Tables 70 87 95 Accessories: Rugs 70 63 51 Lamps 30 25 21 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 inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1.

Home Stop

1. The carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to:

(a) individual products = $16,570

(b) product categories = $17,430

(c) total inventory = $17,430

2. Adjusting Journal Entries:

a) by individual products:

Debit Cost of goods sold $2,160

Credit Inventory $2,160

To record the inventory write-down.

b) by category:

Debit Cost of goods sold $1,300

Credit Inventory $1,300

To record the inventory write-down.

c) by total inventory:

Debit Cost of goods sold $1,300

Credit Inventory $1,300

To record the inventory write-down.

Explanation:

a) Data and Calculations:

Inventory,

by Product Category   Quantity    Per Unit Cost  Market     LCM

Furniture:

Chairs                              50               $ 28             $ 34    $1,400 ($28 * 50)

Desks                              80                   76                 61    $4,880 ($61 * 80)

Tables                             70                   87                 95   $6,090 ($87 * 70)

Accessories:

Rugs                               70                   63                  51   $3,570 ($51 * 70)

Lamps                            30                   25                  21      $630 ($21 * 30)

Total value of inventory (by individual products) =         $16,570

by Category:

Furniture:

at Cost  (50 * $28 + 80 * $76 + 70 * $87) = $13,570

at Market value (50 * $34 + 80 * $61 + 70 * $95) = $13,230

Accessories:

at Cost (70 * $63 + 30 * $25) = $5,160

at Market value (70 * $51 + 30 * $21) = $4,200

Total inventory value = $17,430 ($13,230 + $4,200)

by total inventory:

Furniture: at Cost  (50 * $28 + 80 * $76 + 70 * $87) = $13,570

Accessories: at Cost (70 * $63 + 30 * $25) = $5,160

Total = $18,730 ($13,570 + $5,160)

Furniture: at Market value (50 * $34 + 80 * $61 + 70 * $95) = $13,230

Accessories: at Market value (70 * $51 + 30 * $21) = $4,200

Total inventory value = $17,430 ($13,230 + $4,200)

Market value is chosen as the total is less than the total cost.

The cost of inventory = $18,730

LCM by individual products = 16,570

Write-down = $2,160

The cost of inventory = $18,730

LCM by category =        $17,430

Write-down = $1,300

The cost of inventory = $18,730

LCM by total inventory = 17,430

Write-down = $1,300

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.