Misty,Inchad 24,000 Units of Ending Inventory That Were Recorded at the Cost

question 144

Multiple Choice

Misty,Inc.had 24,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the FIFO method.The current replacement cost is $4.50 per unit.Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule?

• A)$192,000
• B)$300,000
• C)$216,000
• D)$108,000

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