Everyday Wear Retail Had the Following Balances and Transactions During

question 125

Multiple Choice

Everyday Wear Retail had the following balances and transactions during 2018: $$\begin{array} { | l | l | } \hline \text { Beginning Inventory } & 15 \text { units at } \$ 71 \\\hline \text { Tune } 10 & \text { Purchased } 30 \text { units at \$85 } \\\hline \text { December 30 } & \text { Sold 20 units } \\\hline \text { December 31 } & \text { Replacement cost \$66 } \\\hline\end{array}$$ The company maintains its records of inventory on a perpetual basis using the first-in,first-out inventory costing method.Calculate the amount of ending Merchandise Inventory on December 31,2018 using the lower-of-cost-or-market rule.

• A) $1,980
• B) $1,650
• C) $1,775
• D) $1,065

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The process of making something valid for an additional period or restoring it to a fresh condition.