William Company had the following balances and transaction during 2014. Beginning Inventory 20 units at $70 June 10 Purchased 30 units at $80 December 30 Sold 15 units December 31 Replacement cost $60 Williams maintains its records of inventory on a perpetual basis using the first- in, first-out method. Calculate the amount merchandise inventory on December 31, 2014 using lower-of-cost-or-marker rule. a. $2,450 b. $2,100 c. $1,400 d. $1,800

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 2PEA: Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual...
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William Company had the following balances and transaction during 2014.
Beginning Inventory 20 units at $70
June 10
Purchased 30 units at $80
December 30
Sold 15 units
December 31
Replacement cost $60
Williams maintains its records of inventory on a perpetual basis using the first-
in, first-out method. Calculate the amount merchandise inventory on December
31, 2014 using lower-of-cost-or-marker rule.
a. $2,450
b. $2,100
c. $1,400
d. $1,800
Transcribed Image Text:William Company had the following balances and transaction during 2014. Beginning Inventory 20 units at $70 June 10 Purchased 30 units at $80 December 30 Sold 15 units December 31 Replacement cost $60 Williams maintains its records of inventory on a perpetual basis using the first- in, first-out method. Calculate the amount merchandise inventory on December 31, 2014 using lower-of-cost-or-marker rule. a. $2,450 b. $2,100 c. $1,400 d. $1,800
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