If the cost of an item of inventory is $45.00 and the current replacement cost is $60.00, what is the amount included in inventory according to the lower of cost or market? a. $105.00 b. $45.00 C. $15.00 d. $60.00

If the cost of an item of inventory is $45.00 and the current replacement cost is $60.00, what is the amount included in inventory according to the lower of cost or market? a. $105.00 b. $45.00 C. $15.00 d. $60.00

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...

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Question

What is the amount included in inventory according to the lower of cost or market on these general accounting question?

If the cost of an item of inventory is $45.00 and the current
replacement cost is $60.00, what is the amount included in
inventory according to the lower of cost or market?
a. $105.00
b. $45.00
C. $15.00
d. $60.00

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