College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Transcribed Image Text:Superior Electronics had 15,000 units of ending inventory that were
recorded at a cost of $32.00 per unit using the FIFO method. The current
replacement cost is $24.50 per unit.
Which of the following amounts would be reported as Ending
Merchandise Inventory on the balance sheet using the lower-of-cost-or-
market rule?
a. $480,000
b. $367,500
c. $420,000
d. $540,000
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