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Units Unit Cost Total Cost

Inventory, 1/1 200 $10.00 $2,000

Purchases

3/5 300 10.50 3,150

7/12 350 11.00 3,850

10/18 450 12.00 5,400

12/22 150 13.00 1,950

Units sold 1,100

Selling price $15/unit

Selling expense $3

Normal profit $4

Replacement cost $7.50

Assuming use of the LIFO method, how much of an adjustment would be made under the lower of cost or market (LCM) or lower of cost or net realizable value (LCNRV) methods, whichever is applicable?

a) $150 b) $1,550 c) $775 d) zero

Question 6.

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Questions 4-6 are based on the following 2020 information: Units 200 Unit Cost $10.00 Total Cost $2,000 Inventory, 1/1 Purchases 3/5 7/12 10/18 12/22 Units sold 300 350 450 150 1,100 10.50 11.00 12.00 13.00 3,150 3,850 5,400 1,950 Selling price S15/unit Selling expense $3 Normal profit $4 Replacement cost $7.50 4. Cost of goods sold under the weighted average method is a) $12,408 b) $12,000 c) $3,948 d) $12,775 5. Ending inventory under the LIFO method is a) $3,575 b) $4,350 c) $3,948 d) $3,450 6. Assuming use of the LIFO method, how much of an adjustment would be made under the lower of cost or market" (LCM) or "lower of cost or net realizable value (LCNRV) methods, whichever is applicable? a) $150 b) $1,550 c) $775 d) zero

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