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

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
Transcribed Image Text: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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