A Company Has the Following Per Unit Original Costs and Net

question 111

Multiple Choice

A company has the following per unit original costs and net realizable values for its inventory: Part A: 50 units with a cost of $5, and net realizable value of $4.50
Part B: 75 units with a cost of $6, and net realizable value of $6.50
Part C: 160 units with a cost of $3, and net realizable value of $2.50
Under the lower of cost and net realizable value, 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 lower of cost and net realizable value 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 lower of cost and net realizable value is applied to individual items or to the inventory as a whole.

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Definitions:

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