Misty Company Had 22,000 Units of Ending Inventory That Were

question 43

Multiple Choice

Misty Company had 22,000 units of ending inventory that were recorded at their cost of $9.00 per unit using the first-in,first-out (FIFO) method.The current replacement cost is $4.75 per unit.Which of the following amounts would be reported as Ending inventory on the balance sheet using the lower-of-cost-and-net-realisable-value rule?

• A)$220,000
• B)$198,000
• C)$104,500
• D)$302,500

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Definitions:

Voltaic

Pertaining to electricity or electrical phenomena, especially those produced chemically, e.g., in voltaic cells where chemical energy is converted into electrical energy.

Anode

An electrode through which conventional current flows into a polarized electrical device; in electrolysis, it is the positively charged electrode.

Battery

A device used to convert chemical energy into electric energy. A group of voltaic cells connected together in a series or parallel connection.

Electromotive

Related to the generation or production of electromotive force or voltage.