Martha, Inc

question 186

Multiple Choice

Martha, Inc. had 21,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the 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) $168,000
• B) $257,250
• C) $189,000
• D) $89,250

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Definitions:

Cherokee

A Native American people originally from the southeastern United States, forced to relocate to Oklahoma via the Trail of Tears during the 1830s.

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A state in the southeastern United States, established as a British colony in 1732, known for its diverse geography from beaches to mountains.

Cotton Growers

Individuals or entities involved in the cultivation of cotton plants, which is a significant agricultural activity in regions with suitable climates for this crop.

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Refers to the labor force comprising predominantly of white individuals working in the mining industry, often associated with historical mining operations in various parts of the world.