Inventory Item Z8 Has a Cost Price of $30 and a Net

question 26

Multiple Choice

Inventory item Z8 has a cost price of $30 and a net realisable value $25,while item D3 has a cost price of $20,a net realisable value $25 and a replacement cost of $21.Under the lower of cost and net realisable value rule of inventory valuation,applied on an item-by-item basis,the value of inventory is:

• A) $50
• B) $51
• C) $45
• D) none of the above

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Definitions:

Original Prices

The initial cost of goods or services before any discounts, promotions, or changes.

Bureau of Fisheries

A government agency responsible for the regulation and oversight of fishing activities, management of fish populations, and conservation of aquatic habitats.

Fishing License

A regulatory or legal authorization required to fish in certain areas, used to manage and conserve fish stocks and control fishing practices.

Income

Sum of money regularly obtained through one's job or investment decisions.