Misty Company Had 20,000 Units of Ending Inventory That Were

question 115

Multiple Choice

Misty Company had 20,000 units of ending inventory that were recorded at their cost of $5.00 per unit using the first-in, first-out (FIFO) method. The current replacement cost is $4.25 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule?

• A)$100,000
• B)$142,500
• C)$120,000
• D)$85,000

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Definitions:

Dabbawalas

A highly efficient and organized lunchbox delivery and return system primarily operating in Mumbai, India, involving the collection of home-cooked meals from customers' residences and delivering them to their workplace.

Temporal Aggregation

The process of summarizing data over time to simplify analysis and detect patterns.

Rail

A mode of transportation that involves the movement of goods and passengers on tracks with trains.

Freight Transportation

The movement of goods and materials through various modes of transportation, such as trucks, ships, and trains.