Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of January follows: Beginning inventory, 1/18,000 Purchases, 1/5 Sales Rose has determined that at January 31, the replacement cost of its inventory was $8 per unit, and the net realizable value was $8.80 per unit. Rose's normal profit margin is $1 per unit. Rose applies the lower-of-cost-or-market rule to total inventory and records any resulting loss. At January 31, what should be the net carrying amount of Rose's inventory? OA) $80,000 OB) $79,000 OC) $78,000 Total Units Unit Cost D) $81,400 12,000 10,000 $8.20 7.90
Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of January follows: Beginning inventory, 1/18,000 Purchases, 1/5 Sales Rose has determined that at January 31, the replacement cost of its inventory was $8 per unit, and the net realizable value was $8.80 per unit. Rose's normal profit margin is $1 per unit. Rose applies the lower-of-cost-or-market rule to total inventory and records any resulting loss. At January 31, what should be the net carrying amount of Rose's inventory? OA) $80,000 OB) $79,000 OC) $78,000 Total Units Unit Cost D) $81,400 12,000 10,000 $8.20 7.90
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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