One Hundred Units of Inventory on Hand at the End

question 56

Multiple Choice

One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each using LIFO. Current net realisable value is $8.00. What amount would be reported as Inventory on the balance sheet?

• A)$8.00
• B)$800.00
• C)$1 000.00
• D)$10.00

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Definitions:

Yearly Variations

Changes that occur on an annual basis in various environmental or climatic factors, such as temperature, precipitation, and day length.

Playa

A shallow, closed basin in a generally dry environment.

Alluvial Fan

A fan or cone-shaped deposit of sediment built up by streams, typically found where a fast-flowing river flattens, slows, and spreads typically at the mouth of a canyon.

Desert Wash

A sandy or gravel-rich channel in a desert or other arid region.