Iris Company Has Provided the Following Information Regarding Two of Its

question 111

Multiple Choice

Iris Company has provided the following information regarding two of its items of inventory at year-end: • There are 100 units of Item A, having a cost of $20 per unit, a selling price of $24 and a cost to sell of $6 per unit.
• There are 50 units of Item B, having a cost of $50 per unit, a selling price of $56 and a cost to sell of $4 per unit.
How much is the ending inventory using lower of cost or net realizable value on an item-by-item basis?

• A)$4,100.
• B)$4,300.
• C)$4,400.
• D)$4,500.

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Definitions:

Equivalent Value

The amount that represents the same value when compared under different conditions or assumptions.

Due Today

The amount of money that must be paid or is payable today.

Interest Free

Describes a loan or credit arrangement that does not require the borrower to pay interest on the borrowed amount.

Short Term Debt

Refers to any financial obligation that is due for repayment within one year.