A Company Has the Following Per Unit Original Costs and Replacement

question 30

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 the lower of cost or market method, the total value of this company's ending inventory is:

• A) $1,180.00.
• B) $1,075.00.
• C) $1,075.00 or $1,112.50, depending upon whether LCM is applied to individual items or the inventory as a whole.
• D) $1,112.50.
• E) $1,180.00 or $1,075.00, depending upon whether LCM is applied to individual items or to the inventory as a wholE.

---

Definitions:

Busy Street

A street characterized by a high volume of pedestrian or vehicular traffic.

Homophobia

An irrational or phobic fear of gay men and lesbian women. See also anti-gay prejudice; heterosexual bias.

Phobic Fear

An irrational and intense fear of a specific object, situation, or activity, leading to significant anxiety and avoidance behaviors.