Best Deals, Inc. has 10 units in ending merchandise inventory on December 31. The units were purchased in November for $160 each. The price lists from suppliers indicate the current replacement cost of the item to be $162 each. What would be the amount reported as Merchandise Inventory on the balance sheet?

$1,600

Explanation:

According to the accounting principle, the inventory should be recorded at lower of cost or replacement cost.

Since the purchase units are $160 each

And, the replacement cost is $162 each

So, the lower cost is of purchase units i.e $160 each

And, the number of units in ending inventory is 10 units

SO, the amount recorded as Merchandise inventory is

= $160 × 10 units

= $1,600

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"