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:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Price Floor

A government- or authority-imposed minimum price that can be charged for a commodity, often set above the equilibrium price, leading to a potential surplus of the product.

Equilibrium Price

The price where the availability of goods in the market equates to the quantity desired by buyers.

Quantity Supplied

The total number of units of a good or service that sellers are willing and able to sell at a given price.