A Company Has the Following Per Unit Original Costs and Replacement

question 131

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 lower of cost or market, the total value of this company's ending inventory must be reported as:

• 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:

Manufacturing

The process of producing goods and products using raw materials and machinery.

Substantive Dimension

Refers to the focus on the content or substance of industrial relations, including wages, working conditions, and employment terms.

Union Democracy

Union democracy refers to the practice and principle of democratic governance within labor unions, where decisions are made through the voting and participation of its members.

Union Suppression

Tactics used by employers or governments to inhibit union formation, diminish the power of existing unions, or discourage union membership and activities.