Moore Company Purchased an Item for Inventory That Cost $20

question 75

Multiple Choice

Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. It was determined that the disposal cost is $12 per unit. Using the lower of cost or net realizable value (LCM) rule, what amount should be reported on the balance sheet for inventory?

• A)$18.
• B)$20.
• C)$10.
• D)$8.

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Definitions:

Preferred Stock

Stock that has specified rights over common stock.

Operating Activities

Activities directly related to the primary operations of the business, including revenue and expense transactions that affect net income.

Common Stock Split

A division of a company's existing shares into multiple ones to boost the liquidity of the shares, making them more affordable to small investors without altering the shareholder's equity.