ACME Company purchases for resale 1,000 widgets for $64 each. At year-end, the replacementcost is $63 per widget, the estimated selling price is $68 per widget, the disposal cost is $7 perwidget, and the estimated markup is $10 per widget.If ACME uses LCM costing by item, at what amount will the widgets be reported on the balancesheet?a. $63,000b. $51,000c. $64,000d. $62,500e. $61,000

Cost of the inventory = ($64 per widget) Replacement cost = ($63 per widget) Net realizable value…

Answered: ACME Company purchases for resale 1,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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ACME Company purchases for resale 1,000 widgets for $64 each. At year- end, the replacement cost is $63 per widget, the estimated selling price is $68 per widget, the disposal cost is $7 per widget, and the estimated markup is $10 per widget.[General Account] If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet? a. $63,000 b. $51,000 c. $64,000 d. $62,500 e. $61,000
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