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.

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Definitions:

Serviced

The act of performing maintenance or repair work on a vehicle or machinery to ensure it operates correctly.

Trailer Component

A part or element used in the construction or assembly of a trailer, such as axles, brakes, or lighting systems.

Tractor Chassis

The main structural frame of a tractor, to which all other components and systems are attached or supported.

Kingpin

(1) The linkage pin used in a steering knuckle that permits the assembly to pivot, or the tempered steel, coupling pin mounted on a trailer upper coupler that engages with fifth wheel jaws; (2) The lugged pin built into a trailer upper coupler assembly that engages to jaws in a fifth wheel assembly, permitting articulation at the fifth wheel. Forged from middle alloy steels and tempered. In North America, a kingpin is usually welded into the upper coupler; elsewhere, it is more often bolted.