A Company Has the Following Per Unit Original Costs and Replacement

question 110

Multiple Choice

A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $6.50 Part C: 160 units with a cost of $3, and replacement cost of $2.50
Under the lower of cost or market method, the total value of this company's ending inventory is:

• A) $1,112.50.
• B) $1,217.50.
• C) $1,180.00.
• D) $1,075.00.
• E) $1,137.50.

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