Delaware Retail Company Had the Following Balances and Transactions During

question 38

Multiple Choice

Delaware Retail Company had the following balances and transactions during 2019. $$\begin{array} { | l | l | } \hline \text { Beginning Inventory } & \text { 20 units at } \$ 70 \\\hline \text { Tune } 10 & \text { Purchased } 40 \text { units at } \$ 83 \\\hline \text { December 30 } & \text { Sold 30 units } \\\hline \text { December 31 } & \text { Replacement cost } \$ 60 \\\hline\end{array}$$ 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.

• A) $2,490
• B) $2,400
• C) $1,800
• D) $3,600

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Definitions:

Unity

A state or condition of being one; in economics, it might refer to a unity of purpose or action among individuals or entities.

Nondiscriminating

A term used in various contexts to describe actions or policies that apply uniformly to all members of a group without exceptions based on any specific characteristics.

Pure Monopolist's Demand Curve

Represents the market demand curve since the monopolist is the sole provider of the product or service, hence facing the market demand directly.

Inelastic

Describes demand that does not significantly change with a change in price.