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e-lub [12.9K]
2 years ago
12

A company has the following per unit recorded cost and replacement cost relating to its inventory:Item 1 5 units Cost $50 Market

$45Item 2 7 units Cost $60 Market $65Item 3 9 units Cost $30 Market $25Applying the lower of cost or market method, the reported value of this company's ending inventory if LCM is applied to individual items is _____.
Business
1 answer:
Kryger [21]2 years ago
3 0

The reported value of this company's ending inventory if LCM is applied to individual items is $870.

<h3>What is reported value?</h3>

The value of any assets or liabilities or any such credentials, which is recorded in the books of official record for the purpose of accounting as per the standards, is known as the reported value.

The computation of the reported value in the given condition will be,

  1. Item 1 – 5 Units x $45= $225;
  2. Item 2 – 7 units x $60= $420;
  3. Item 3 – 9 Units x $25= $225.

The summation of all the reported values will be,

$(225+420+225)= $870.

Hence, the reported value of the inventory of the company is as aforementioned.

Learn more about reported value here:

brainly.com/question/14002494

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Treasury stock, also known as treasury stock or repurchased stock, refers to shares issued prior to being repurchased by shareholders through the issuing company. As a result, the total number of shares outstanding on the open market is reduced.

Companies may use their shares to pay for investments in or acquisitions of competitors. These stocks may also be reissued to existing shareholders to reduce dilution from employee incentive compensation plans.

Stocks consist of shares in which the ownership of a company or business has been divided. One share represents a partial ownership interest in the company over the total number of shares.

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Arte-miy333 [17]

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