Landers Company Has 9 Units in Inventory on December 31

question 124

Multiple Choice

Landers Company has 9 units in inventory on December 31.The units were purchased in November for $180 each.The price lists from suppliers indicate the current replacement cost of the item to be $178 each.What is the effect on gross profit if Landers values its ending merchandise inventory using the lower-of-cost-or-market rule?

• A) The gross profit would increase by $2.
• B) The gross profit would not be affected.
• C) The gross profit would decrease by $18.
• D) The gross profit would increase by $18.

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Definitions:

Ribosomes

Cellular organelles that carry out protein synthesis by translating messenger RNA into polypeptide chains.

Protein Synthesis

The process through which cells create proteins based on the instructions encoded within genes, involving transcription and translation stages.

Ribosomes

Cellular organelles that serve as the site of protein synthesis in the cell.

Ribosomes

Cellular structures responsible for synthesizing proteins from amino acids during the process of translation.