Question: 239 BOZ Co. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory follows: Estimated selling price $ 5,08,000 Estimated cost of disposal 20,000 Normal profit margin Current replacement cost 60,000 4,55,000 BOZ records losses that result from applying the lower-of-cost-or- market (LCM) rule. At its year-end, what should be the net carrying value of BOZ's inventory? a. $500,000 b. $488,000 c. $455,000 d. None of the above is correct
Question: 239 BOZ Co. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory follows: Estimated selling price $ 5,08,000 Estimated cost of disposal 20,000 Normal profit margin Current replacement cost 60,000 4,55,000 BOZ records losses that result from applying the lower-of-cost-or- market (LCM) rule. At its year-end, what should be the net carrying value of BOZ's inventory? a. $500,000 b. $488,000 c. $455,000 d. None of the above is correct
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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![Question: 239
BOZ Co. has determined its year-end inventory on a FIFO basis to be
$500,000. Information pertaining to that inventory follows:
Estimated selling price
$ 5,08,000
Estimated cost of disposal
20,000
Normal profit margin
Current replacement cost
60,000
4,55,000
BOZ records losses that result from applying the lower-of-cost-or-
market (LCM) rule. At its year-end, what should be the net carrying
value of BOZ's inventory?
a. $500,000
b. $488,000
c. $455,000
d. None of the above is correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13479b25-9478-476a-9a44-474363c9dc2a%2F3a1d2dc3-775f-4697-b54f-76953835e4d9%2Fmufd8ic_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question: 239
BOZ Co. has determined its year-end inventory on a FIFO basis to be
$500,000. Information pertaining to that inventory follows:
Estimated selling price
$ 5,08,000
Estimated cost of disposal
20,000
Normal profit margin
Current replacement cost
60,000
4,55,000
BOZ records losses that result from applying the lower-of-cost-or-
market (LCM) rule. At its year-end, what should be the net carrying
value of BOZ's inventory?
a. $500,000
b. $488,000
c. $455,000
d. None of the above is correct
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