contestada

A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items.
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:________________.

Respuesta :

Zviko

Answer:

The total value of this company's ending inventory is $ 1,075

Explanation:

Under the lower of cost or market method, Inventory is measured at the lower of either cost or market value

Calculation of total value of this company's ending inventory is as follows:

Part A   Lower is Replacement Cost. Therefore (50units×$4.50)     225

Part B   Lower is  Cost. Therefore (75 units×$6.00)                           450

Part C   Lower is Replacement Cost. Therefore (160units×$2.50)    400

Total Value of Inventory                                                                      1075

Otras preguntas