Iris Company Has Provided the Following Information Regarding Two of Its

question 46

Multiple Choice

Iris Company has provided the following information regarding two of its items of inventory at year-end: • There are 100 units of Item A, having a cost of $20 per unit and a replacement cost of $18 per unit.
• There are 50 units of Item B, having a cost of $50 per unit and a replacement cost of $55 per unit.
How much is the ending inventory using lower of cost or market on an item-by-item basis?

• A) $4,300.
• B) $4,500.
• C)$4,750.
• D)$4,550.

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Definitions:

Capital Goods

Long-lasting goods used in the production of other goods or services, such as machinery, tools, and buildings.

Consumer Goods

Finished products consumed by individuals or households to satisfy their immediate wants or needs, such as food, clothing, and electronics.

Limited Partnerships

A form of partnership consisting of one or more general partners, who manage the business and assume legal debts and obligations, and one or more limited partners, who are liable only to the extent of their investments.

Corporate Income Taxes

Taxes imposed on the net income or profit of corporations, calculated after deducting expenses like cost of goods sold and wages.