A company has determined its year$-$end inventory on a FIFO basis to be $$600,000.$

Information pertaining to that inventory is as follows:

Selling price

Costs to sell

$510,000$

$38,000$

$541,000$

Replacement cost

What should be the reported amount of the company's inventory?

A$)$ $$541,000.$

B$)$ $$595,000.$

C$)$ $$572,000.$

D$)$ $$610,000.$

On April $1,$ a company purchased two units of inventory, A and B$.$ The cost of unit A was

$$650,$ and the cost of unit B was $$625.$ On April $30,$ the company had not sold the inventory.

The net realizable value of unit A was now $$685,$ while the net realizable value of unit B was

$$550.$ The adjusting entry associated with the lower of cost or net realizable value on April

$30$ will be:

A$)$ Debit Cost of goods sold; credit Inventory for $$40.$

B$)$ Debit Inventory; credit Cost of goods sold for $$40.$

C$)$ Debit Cost of goods sold; credit Inventory for $$75.$

D$)$ Debit Inventory; credit Cost of goods sold for $$75.$

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

In applying the lower of cost or net realizable value rule, the inventory of skis would be

valued at:

A$)$ $$153,900.$

B$)$ $$134,000.$

C$)$ $$119,700.$

D$)$ $$138,000.$