What amount should be reported on the balance sheet for inventory on the accounting question? Weston Enterprises purchased an item forinventory that cost $30 per unit and was priced tosell at $50. It was determined that the disposalcost is $28 per unit. Using the lower of cost or netrealizable value (LCM) rule, what amount should bereported on the balance sheet for inventory?a. $22b. $28c. $50d. $30

Step 1: Define Lower of Cost or Net Realizable Value (LCM Rule)The LCM rule requires inventory to be…

Answered: Weston Enterprises purchased an item…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...

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What amount should be reported on the balance sheet for inventory on these general accounting question?
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If the cost of an item of inventory is $52.00 and the current replacement cost is $70.00, what is the amount included in inventory according to the lower of cost or market? Select the correct answer. A. $18.00 B. $122.00 C. $52.00 D. $70.00
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d The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) a. 1. Inventory 2. Purchase 3. Sale (at $15.20) 4. Purchase 5. Sale (at $15.20) 6. Purchase 7. Sale (at $18.20) 8. Purchase Independent Assumptions FIFO Weighted average, periodic inventory system Moving average, perpetual inventory system b. Unit Units Cost 5,600 $7.00 11,200 7.30 7,900 10,200 7.60 16,800 18,800 7.76 16,800 11,200 7.90 C. $ Ending Inventory 121,848 121,675 X 121,676 Units and Amounts Cost of Goods Sold $ 311,000 311,064 311,328 $ Gross Margin 370,200 370,136 X 369,872
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