The following data refer to Brompton Company's ending inventory: Item Code Quantity Unit Cost Unit Market Value Small 100 $250 $246 Medium 400 150 145 Large 600 170 162 Extra-Large 250 265 270 What is the ending inventory balance if the lower cost or net realizable value rule is applied to each item of inventory? A) $248,050 B) $246,050 C) $253,250 D) $252,850

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 26CE: Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its...
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The following data refer to Brompton Company's ending inventory:
Item Code Quantity Unit Cost Unit Market Value
Small
100
$250
$246
Medium
400
150
145
Large
600
170
162
Extra-Large 250
265
270
What is the ending inventory balance if the lower cost or net realizable value rule is applied to
each item of inventory?
A) $248,050
B) $246,050
C) $253,250
D) $252,850
Transcribed Image Text:The following data refer to Brompton Company's ending inventory: Item Code Quantity Unit Cost Unit Market Value Small 100 $250 $246 Medium 400 150 145 Large 600 170 162 Extra-Large 250 265 270 What is the ending inventory balance if the lower cost or net realizable value rule is applied to each item of inventory? A) $248,050 B) $246,050 C) $253,250 D) $252,850
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