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? $38,000 $40,000 $55,000 $37,000 $39,000