Question 14 (1 point)

Lower of cost and net realizable value principle involves:

a

recording the revenue on sale of merchandise inventory at the market price of an inventory item

b

writing inventory down to the lower amount of the inventory cost and the amount expected to be received upon sale of the goods

c

writing inventory up to the higher of inventory cost and the current market price.

d

all of the above

Question 15 (5 points)

From the following info. calculate the value of Ending Inventory in FIFO and Wighted Average Cost method 9rounded to closest whole number)

Details No. of Units Price per unit

Beginning Inventory 180 $ 30

Feb 20 - Purchases 315 $ 29

Apr 30 - Sold 145 $ 40

May 15 - Sold 225 $ 35

a

$ 3725 and $ 3725 resp

b

$ 3625 and $ 3670 resp.

c

$ 3670 and $ 3625resp.

d

none of the above