Jenks Company developed the following information about its inventories in applying the cost or market (LCM) basis in valuing inventories: Product Cost Market A $ 55,000 $ 60,000 B $ 40,000 $38,000 C $ 80,000 $81,000 If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be: A. $175,000 B. $171,000 C. $173,000 D. $181,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 11PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...
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Jenks Company developed the following information about its
inventories in applying the cost or market (LCM) basis in valuing
inventories:
Product Cost
Market
A
$ 55,000
$ 60,000
B
$ 40,000 $38,000
C
$ 80,000 $81,000
If Jenks applies the LCM basis, the value of the inventory reported
on the balance sheet would be:
A. $175,000
B. $171,000
C. $173,000
D. $181,000
Transcribed Image Text:Jenks Company developed the following information about its inventories in applying the cost or market (LCM) basis in valuing inventories: Product Cost Market A $ 55,000 $ 60,000 B $ 40,000 $38,000 C $ 80,000 $81,000 If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be: A. $175,000 B. $171,000 C. $173,000 D. $181,000
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