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. 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
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. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49ddc6e0-bd9d-4cc0-9370-fe886852ddb9%2F624c8cca-f594-4cd6-a536-a26f90e1c56c%2Ff6dgjq_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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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