Welsh Company Purchased an Item for Inventory That Cost $10

question 142

Multiple Choice

Welsh Company purchased an item for inventory that cost $10 per unit and was marked to sell at $14.It was determined that the replacement cost is $9 per unit.No purchases in the near future are anticipated.Using the lower of cost and net realizable value rule,what is the per unit valuation for inventory?

• A)$9.00
• B)$10.00
• C)$12.00
• D)$14.00

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Definitions:

Blue Exhaust Smoke

Smoke with a blue tint emitted from a vehicle's exhaust, typically indicating oil burning in the combustion chamber.

Combustion Chamber

A section of an engine where fuel and air are burned to produce energy.

Voltage

An amount of electrical potential, that is, the capacity to do work.

Amperage

The amount of electrical current flow that is occurring through a conductor.