A company had been selling its product for $40 per unit, but recently - 10253

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Wed 23 May, 2012
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Request Description

 

A company had been selling its product for $40 per unit, but recently lowered the selling price to $25 per unit. The company's current inventory consists of 250 units purchased at $36 per unit. The replacement cost of this merchandise is currently $23 per unit. At what amount should the company's inventory to be reported on the balance sheet under the lower of cost or market rule?

 

 

 

$9,000

$6,250

$5,750

$10,000

 

Solution Description

 

A company had been selling its product for $40 per unit, but recently lowered the selling price to $25 per unit. The company's current inventory consists of 250 units purchased at $36 per unit. The replacement cost of this merchandise is currently $23 per unit. At what amount should the company's inventory to be reported on the balance sheet under the lower of cost or market rule?

 

 

 

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