A Company Values Its Inventory at Lower of Cost and Net

question 73

Multiple Choice

A company values its inventory at lower of cost and net realizable value (NRV) .It paid $250 for, and still has on hand, 10 units that it expects to sell for $400 less selling costs of $40.Which of the following statements is true related to these goods in this period?

• A)The company recognizes $400 of selling costs.
• B)The inventory is valued at $2,100.
• C)The inventory is valued at $2,500.
• D)The inventory is valued at $3,600.

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Definitions:

Pregnant

A condition where a female is carrying a developing embryo or fetus within her uterus.

Twins

Two offspring produced by the same pregnancy, which can be identical (monozygotic) or fraternal (dizygotic).

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Chromosomes

Structures located within the nucleus of a cell, composed of DNA and proteins, that carry genetic information in the form of genes.