Assume That an Entity Acquired 150 Items of Inventory at a Cost

question 13

Multiple Choice

Assume that an entity acquired 150 items of inventory at a cost of $90 each,and sold 100 of the items for $160 each when the replacement cost to the entity was $120 each.Also assume that the replacement cost of the 50 remaining items of inventory at year end was $130.What would be the realised holding gain on the inventory that was sold?

• A) $7 000 [100 x ($160 - $90)]
• B) $4 000 [100 x ($130 - $90)]
• C) $3 000 [100 x ($120 - $90)]
• D) $500 [50 x ($130 - $120)]

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Definitions:

Modeled Behavior

Actions demonstrated by individuals that serve as examples for others to observe and potentially imitate.

Observer's Ability

The capability to note and analyze phenomena or behavior accurately through observation.

Majority Rule

A principle in decision-making processes where the option that receives more than half of the votes is selected.

Decision-Making Method

A systematic approach or process that helps to make choices among various alternatives by assessing different criteria and outcomes.