A Company Has the Following Per Unit Original Costs and Replacement

question 102

Multiple Choice

A company has the following per unit original costs and replacement costs for its inventory:
Part A: 50 units with a cost of $5 and replacement cost of $4.50
Part B: 75 units with a cost of $6 and replacement cost of $6.50
Part C: 160 units with a cost of $3 and replacement cost of $2.50
Under the lower of cost or market method,the total value of this company's ending inventory is:

• A)$1,180.00
• B)$1,075.00
• C)$1,112.50 or $1075.00,depending upon whether LCM is applied to individual items or the inventory as a whole
• D)$1,112.50
• E)$1180.00 or $1075.00,depending upon whether LCM is applied to individual items or to the inventory as a whole

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Definitions:

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Hardy Personality

Describes individuals who exhibit resilience and a stronger ability to cope with stress.

Catastrophizing

An irrational thought process where an individual believes something is far worse than it actually is, often leading to increased anxiety and stress.

Conformity

Behaving in a way that meets a specified standard, in coordination with a group.