9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and another 1,600 units on January 31 at a per-unit cost of $254. In the period from February 1 through year-end, the company sold 3,000 units of this product. At year-end, 200 units remained in inventory. Assume that the replacement cost of this monitor at year-end is $244 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of this inventory by: Multiple Choice О $0. ○ $1,000. ○ $2,000. ○ $3,000.
9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and another 1,600 units on January 31 at a per-unit cost of $254. In the period from February 1 through year-end, the company sold 3,000 units of this product. At year-end, 200 units remained in inventory. Assume that the replacement cost of this monitor at year-end is $244 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of this inventory by: Multiple Choice О $0. ○ $1,000. ○ $2,000. ○ $3,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![9
Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and
another 1,600 units on January 31 at a per-unit cost of $254. In the period from February 1 through
year-end, the company sold 3,000 units of this product. At year-end, 200 units remained in inventory.
Assume that the replacement cost of this monitor at year-end is $244 per unit. Using the FIFO flow
assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of
this inventory by:
Multiple Choice
О
$0.
○ $1,000.
○ $2,000.
○ $3,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd152f93-8aef-4ccc-8971-0d5ae79523ab%2F1f85fb39-fd6a-4369-a434-dad06a0f1104%2Fp5rcf39_processed.png&w=3840&q=75)
Transcribed Image Text:9
Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and
another 1,600 units on January 31 at a per-unit cost of $254. In the period from February 1 through
year-end, the company sold 3,000 units of this product. At year-end, 200 units remained in inventory.
Assume that the replacement cost of this monitor at year-end is $244 per unit. Using the FIFO flow
assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of
this inventory by:
Multiple Choice
О
$0.
○ $1,000.
○ $2,000.
○ $3,000.
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