10 Smart Phones, he had the following t oes and nations during 2018 Beginning invertory S70...

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Question

business accounting

Answer 1

Answer #1

As per last in first out method, inventory purchased at the latest is sold first.

Hence 114 units sold must be from June 10 purchases.

Cost of Ending inventory

46

3244

Cost of ending inventory = $3,244

Replacement cost on Dec 31 = $77 per unit

Hence, Replacement cost of 46 units = 77 x 46

= $3,542

Hence, as per lower cost on market value rule, ending inventory will be valued at $3,244.

Correct option is (c).

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Answer 2

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