A Company Has the Following Per Unit Original Costs and Replacement

question 110

Multiple Choice

A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $6.50 Part C: 160 units with a cost of $3, and replacement cost of $2.50
Under the lower of cost or market method, the total value of this company's ending inventory is:

• A) $1,112.50.
• B) $1,217.50.
• C) $1,180.00.
• D) $1,075.00.
• E) $1,137.50.

---

Definitions:

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the degree of inequality.

Shaded Area

In graphical analysis, the region enclosed by curves or boundaries, often used to represent quantities such as surplus, deficit, or probability.

Transfer Program

Government policies designed to redistribute income in the society through mechanisms such as social security, grants, and subsidies to support the economically disadvantaged.

Federal Level

Pertains to the national government or the division of power between the national government and states or provinces in a federation.