Mason Company Has the Following Per Unit Original Costs and Replacement

question 22

Multiple Choice

Mason Company has the following per unit original costs and replacement costs for its inventory. The company applies LCM to individual items of product: Part A: 20 units with a cost of $3 and replacement cost of $3.50.
Part B: 30 units with a cost of $9 and replacement cost of $8.50.
Part C: 60 units with a cost of $8 and replacement cost of $7.00.
When applying the lower of cost or market method, the total value of this company's ending inventory must be reported as:

• A)$810.00.
• B)$745.00.
• C)$75.00.
• D)$735.00.
• E)$1,545.00.

Appreciate the historical and philosophical significance of logic.

Understand and apply the concept of applying a generalization in logical reasoning.

Recognize and explain the fallacy of false composition.

Deduce valid inferences from given premises involving class memberships and relationships.

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Definitions:

Equivalent

Equal in value, function, or meaning.

Paid Today

A financial transaction or settlement completed on the current date.

Paid

The state of having been transferred money in exchange for goods or services.

Economic Value

A measure of the worth of goods or services based on their ability to fulfill needs or desires.