One Hundred Units of Inventory on Hand at the End

question 79

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 replacement cost is $8.00.What amount would be reported as Inventory on the balance sheet?

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

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Definitions:

French-Based Code Law

A legal system based on comprehensive written statutes and codes as a primary source of law, in contrast to common law systems; it is derived from the Napoleonic Code.

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.