A company has the following per unit original costs and replacement costs for its inventory: A: 50 units with a cost of $5, and a replacement cost of $4.50 B: 75 units with a cost of $6, and a replacement cost of $6.50 C: 160 units with a cost of $3, and a replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is: 1. $1,180.00. 2. $1,075.00. 3. $1,112.50 or $1075.00, depending upon whether LCM is applied to individual items or the inventory as a whole. 4. $1,112.50.

A company has the following per unit original costs and replacement costs for its inventory: A: 50 units with a cost of $5, and a replacement cost of $4.50 B: 75 units with a cost of $6, and a replacement cost of $6.50 C: 160 units with a cost of $3, and a replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is: 1. $1,180.00. 2. $1,075.00. 3. $1,112.50 or $1075.00, depending upon whether LCM is applied to individual items or the inventory as a whole. 4. $1,112.50.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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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 a replacement cost of $4.50. Part B: 75 units with a cost of $6, and a 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
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A company has the following per unit original costs and market values for its inventory. Lower of cost or market is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50Part B: 75 units with a cost of $6, and replacement cost of $6.50Part 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:
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