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Valentin [98]
3 years ago
5

Merle Industries had been selling its product for $40 per unit, but recently lowered the selling price to $30 per unit. The comp

any's current inventory consists of 200 units purchased at $32 per unit. The market value of this inventory is currently $26 per unit. At what amount should the company's inventory be reported on the balance sheet?
Business
1 answer:
Marta_Voda [28]3 years ago
8 0

Answer:

$5,200

Explanation:

The amount which is to be reported in the balance sheet is computed as:

Amount = Inventory × Current market value

where

As the presently the market price is $26. So, this amount will be considered while computing the inventory of the company.

Inventory is 200 units

Current market value is $26 per unit

Putting the values above:

Amount = 200 units × $26 per unit

Amount = $5,200

Therefore, $5,200 amount will be recorded in the balance sheet for the inventory amount.

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