Gem Company measured inventory at the lower of cost and net realizable value. Data regarding the items in the inventory are: Markers Pens Highlighters Historical cost Selling price Estimated cost to complete Replacement cost Normal profit margin as a percentage of selling price 240,000 360,000 48,000 208,000 188,000 250,000 50,000 168,000 300,000 360,000 68,000 318,000 25% 25% 10% What is the measurement of the inventory? a. 720,000 b. 728,000 c. 676,000 d. 694,000

Gem Company measured inventory at the lower of cost and net realizable value. Data regarding the items in the inventory are: Markers Pens Highlighters Historical cost Selling price Estimated cost to complete Replacement cost Normal profit margin as a percentage of selling price 240,000 360,000 48,000 208,000 188,000 250,000 50,000 168,000 300,000 360,000 68,000 318,000 25% 25% 10% What is the measurement of the inventory? a. 720,000 b. 728,000 c. 676,000 d. 694,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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