Bright Star Trading purchases for resale 2,000 gadgets for $45 each. At year-end, the replacement cost is $43 per gadget, the estimated selling price is $50 per gadget, the disposal cost is $5 per gadget, and the estimated markup is $8 per gadget. If Bright Star uses LCM costing by item, at what amount will the gadgets be reported on the balance sheet? a. $86,000 b. $90,000 c. $85,000 d. $88,000 e. $89,000

Bright Star Trading purchases for resale 2,000 gadgets for $45 each. At year-end, the replacement cost is $43 per gadget, the estimated selling price is $50 per gadget, the disposal cost is $5 per gadget, and the estimated markup is $8 per gadget. If Bright Star uses LCM costing by item, at what amount will the gadgets be reported on the balance sheet? a. $86,000 b. $90,000 c. $85,000 d. $88,000 e. $89,000

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 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...

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