FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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In 2021, Orear Company signed a contract to purchase 5,000 inventory items from a former competitor for
$45,000. The estimated selling value of the individual items varies greatly, but it is believed total resale value is
$60,000. If item A could be sold for $100 and item B sold for $160, using relative sales value the assigned
costs should be options: A) $75 for item A and $120 for item B B) $12 for each item C) $25 for item A and $40
for item B D) $9 for each item
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Transcribed Image Text:In 2021, Orear Company signed a contract to purchase 5,000 inventory items from a former competitor for $45,000. The estimated selling value of the individual items varies greatly, but it is believed total resale value is $60,000. If item A could be sold for $100 and item B sold for $160, using relative sales value the assigned costs should be options: A) $75 for item A and $120 for item B B) $12 for each item C) $25 for item A and $40 for item B D) $9 for each item
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