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masya89 [10]
3 years ago
10

A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall

en to $15 per unit. This company's current FIFO inventory consists of 200 units purchased at $16 per unit. Net realizable value has fallen to $13 per unit. Calculate the value of this company's inventory at the lower of cost or market.
Business
1 answer:
Scorpion4ik [409]3 years ago
6 0

Answer:

$2,600

Explanation:

Calculation of the value of the company's inventory at the lower of cost or market.

Current FIFO inventory ×Net realizable value

Where,

Current FIFO inventory= 200 units

Net realizable value $13 per unit

Therefore,

200 units *$13 per unit = $2,600.

Lower cost of market can be said to mean that the inventory cost at either the purchase cost or replacement value .

Bases on the information given in the question, replacement cost is lower or lesser than the purchase cost which is why the inventory units are been cost at the replacement value of $13 each.

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A suitable advantage of magazine advertisement is option C.

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3 years ago
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Lubov Fominskaja [6]
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6 0
3 years ago
Salvia Company recently purchased a truck. The price negotiated with the dealer was $42,500. Salvia also paid sales tax of $2,50
LenaWriter [7]

Answer:

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Which of the following is not a goal of federal economic policy? full employment growth a high savings rate Keynesian economics
Ivan

Answer:

high savings rate

Explanation:

High savings rate is not a goal of federal economic policy. The goal of federal economic policy is to achieve full employment, economic growth and stable prices.

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5 0
3 years ago
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Alexxx [7]

Answer:

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So, the amount that Micro report as income before income tax expense that year is $19,687 million.

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