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 estimatedmarkup is $10 per widget.[General Account]If ACME uses LCM costing by item, at what amount will the widgets bereported on the balance sheet?a. $63,000b. $51,000c. $64,000d. $62,500e. $61,000

Step 1: Determine the cost per widgetStep 2: Determine the replacement cost per widgetStep 3:…

Answered: ACME Company purchases for resale 1,000…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

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