Ending Inventory for Commodity X Consists of 20 Units

question 92

Multiple Choice

Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost of the 20 units is $5 each. Current net realizable value is $4.75 per unit. Using the lower-of-cost-and-net -realizable-value rule to value inventory, the balance sheet would show ending inventory of:

• A)$5.00.
• B)$4.75.
• C)$95.00.
• D)$100.00.

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Definitions:

Variance

A measure of the dispersion or spread of a set of data points around their mean value.

Variance

A measure of how much the values in a data set differ from the mean of that set.

Data

Pieces of factual information collected together for analysis or used to reason and make decisions.

Sum of Squared Scores

A measure in statistics that represents the total deviation of each score from the mean, squared and summed up.