A Company Has the Following Per Unit Original Costs and Replacement

question 145

Multiple Choice

A company has the following per unit original costs and replacement costs for its inventory: Part A: 10 units with a cost of $3 and replacement cost of $2.50.
Part B: 40 units with a cost of $9 and replacement cost of $9.50.
Part C: 75 units with a cost of $8 and replacement cost of $7.50.
Under the lower of cost or market method,the total value of this company's ending inventory must be reported as:

• A)$990.00.
• B)$947.50.
• C)$967.50 or $947.50,depending upon whether LCM is applied to individual items or the inventory as a whole.
• D)$967.50.
• E)$990.00 or $947.50,depending upon whether LCM is applied to individual items or to the inventory as a whole.

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Definitions:

Uterus Lining

The innermost layer of the uterus, known as the endometrium, which thickens during the menstrual cycle to prepare for possible implantation of an embryo.

Fallopian Tubes

Tubular structures connecting the ovaries to the uterus, where fertilization of an egg by sperm typically occurs.

Specialty Product

A unique or high-value product that consumers are often willing to make an extra effort to purchase.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to a perceived superiority or emotional attachment.