Question
Johnson, Inc. reports its inventory using the lower-of-cost-or-market (LCM) rule. Data related to its inventory are as follows: Cost per Replacement Value Item Quantity Unit
- Johnson, Inc. reports its inventory using the lower-of-cost-or-market (LCM) rule. Data related to its inventory are as follows:
|
| Cost per | Replacement Value | |||
Item | Quantity |
| Unit |
|
| per Unit |
Q | 100 | $12 |
| $11 | ||
R | 80 | 20 |
| 23 | ||
S | 120 | 15 |
| 16 | ||
T | 250 | 10 |
| 8 |
Determine the amount at which Johnsons ending inventory should be reported on its balance sheet.
- a. $6,500
- b. $7,100
- c. $6,860
- d. $6,800
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Financial Accounting A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards
7th Edition
0072289988, 978-0072289985
