ACME Company purchases for resale 1,000 widgets for $38 each. At year-end, the replacement cost is $37 per widget, the estimated selling price is $63 per widget, the disposal cost is $8 per widget, and the estimated markup is $15 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet? a. $39,000 b. $37,000 c. $55,000 d. $40,000 e. $38,000
ACME Company purchases for resale 1,000 widgets for $38 each. At year-end, the replacement cost is $37 per widget, the estimated selling price is $63 per widget, the disposal cost is $8 per widget, and the estimated markup is $15 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet? a. $39,000 b. $37,000 c. $55,000 d. $40,000 e. $38,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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