A company’s normal selling price for its product is $29 per unit. However, due t
ID: 2612711 • Letter: A
Question
A company’s normal selling price for its product is $29 per unit. However, due to market competition, the selling price has fallen to $24 per unit. This company's current inventory consists of 290 units purchased at $25 per unit. Replacement cost has fallen to $22 per unit. Calculate the value of this company's inventory at the lower of cost or market.
A company’s normal selling price for its product is $29 per unit. However, due to market competition, the selling price has fallen to $24 per unit. This company's current inventory consists of 290 units purchased at $25 per unit. Replacement cost has fallen to $22 per unit. Calculate the value of this company's inventory at the lower of cost or market.
Explanation / Answer
Particulars Amount Number of units 290.00 Cost per unit 25.00 Total cost 7,250.00 Number of units 290.00 Market price 22.00 Market Value 6,380.00 Thus lower is market value which is $6,380 .
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