Ans Mercury Inc. had 30,000 units ofending inventory recorded at $9.50 perunit using FIFO method. Currentreplacement cost is $5.25 per unit.Which amount should be reported asEnding Merchandise Inventory on thebalance sheet using lower-of-cost-or-market rule?

Step 1: An accounting principle known as the Lower-of-Cost-or-Market (LCM) Rule makes sure that…

Answered: Mercury Inc. had 30,000 units of ending…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 7PA: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...

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Mercury Inc. had 30,000 units of ending inventory recorded at $9.50 per unit using FIFO method. Current replacement cost is $5.25 per unit. Which amount should be reported as Ending Merchandise Inventory on the balance sheet using lower-of-cost-or- market rule?