Question

ACME Company purchases for resale 1,000 widgets for $95 each. At year end, the replacement cost is $109 per widget, the estimated selling price is $125 per widget, the disposal cost is $18 per widget, and the estimated markup is $22 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet? $95,000 $101,000 $109,000 $107,000 $85,000

Answer 1