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

---

Definitions:

Federal Budget Deficit

The deficit occurring when government spending surpasses its income in a specific fiscal year.

National Debt

The total amount of money that a country's government has borrowed, by various means, and has yet to repay.

Federal Government Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues, leading to borrowing and debt accumulation.

Interest Rates

The percentage charged on a loan or paid on deposited funds.