Smart Phones, Inc The Company Maintains Its Records of Inventory on a Perpetual

question 83

Multiple Choice

Smart Phones, Inc. had the following balances and transactions during 2019. $$\begin{array} { | l | l | } \hline \text { Beginning Inventory } & 40 \text { units at } \$ 70 \\\hline \text { June 10 } & \text { Purchased } 120 \text { units at } \$ 74 \\\hline \text { December 30 } & \text { Sold } 114 \text { units } \\\hline \text { December 31 } & \text { Replacement cost } \$ 77 \\\hline\end{array}$$ The company maintains its records of inventory on a perpetual basis using the last-in, first-out inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2019 using the lower-of-cost-or-market rule. (Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)

• A) $2,800
• B) $3,244
• C) $3,542
• D) $3,404

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