Alfalfa Company Developed the Following Information About Its Inventories in Applying

question 142

Multiple Choice

Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories: $\begin{array}{rrr}&&\text { Market }\\\text { Product } & \text { Cost } & \text { value }\\\text { A } & \$ 112,000 & \$ 120,000 \\\text { B } & 80,000 & 76,000 \\\text { C } & 155,000 & 162,000\end{array}$ If Alfalfa applies the LCM basis, the value of the inventory reported on the balance sheet would be

• A) $343,000.
• B) $347,000.
• C) $358,000.
• D) $362,000.

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Definitions:

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter.

Cholesterol Level

The concentration of cholesterol in the blood, often measured to assess heart health.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation means the values are close to the mean, while a high standard deviation means they are spread out over a wider range.

Confidence Interval

A range of values defined so that there is a specified probability that the value of a parameter lies within it.