Boulevard Home Furnishings Had the Following Balances and Transactions During

question 183

Multiple Choice

Boulevard Home Furnishings had the following balances and transactions during 2018. $$\begin{array} { | l | l | } \hline \text { Beginning Inventory } & \text { 20 units at \$74 } \\\hline \text { Tune } 10 & \text { Purchased } 40 \text { units at \$84 } \\\hline \text { December 30 } & \text { Sold 30 units } \\\hline \text { December 31 } & \text { Replacement cost \$86 } \\\hline\end{array}$$ The company maintains its records of inventory on a perpetual basis using the FIFO inventory costing method.Calculate the amount of ending Merchandise Inventory at December 31,2018 using the lower-of-cost-or-market rule.

• A) $2,520
• B) $2,580
• C) $3,440
• D) $5,160

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Definitions:

Formal Income Statement

A financial document that provides a detailed report of a company's revenues, expenses, and net income over a specific period.

Worksheet

A paper or digital form used to organize data and calculate figures, often preliminary to the preparation of financial statements.

Operating Expense

A type of expenditure that a business incurs as a result of carrying out its day-to-day operations, excluding the cost of goods sold.