Mortenson Corporation sells its product, a rare metal, on a controlled market with one price quote applicable to all quantities. The total cost of 5,000 pounds of the metal now in inventory is $200,000. The total selling price is $560,000, and estimated disposal costs are $20,000. calculate At what amount should the metal inventory be reported? 5,000 pounds on the balance sheet?

Mortenson Corporation purchased two inventory items at a total cost of $120,000. The acquisition included 3,000 units of the LF product and 7,000 units of the 1B product. LF normally sells for $30 per unit and 1B for $10 per unit. If Turner sells 1,000 units of LF, calculate how much gross profit should he recognize?