Business, 16.04.2020 01:10 krystalhurst97

Castle TV, Inc. purchased 2,100 monitors on January 5 at a per-unit cost of $175, and another 2,100 units on January 31 at a per-unit cost of $274. In the period from February 1 through year-end, the company sold 3,800 units of this product. At year-end, 400 units remained in inventory.

Assume that Castle TV, Inc. uses the FIFO flow assumption. The cost of the 400 units in inventory at year-end is:

A.$179,600.

B.$109,600.

C.$70,000.

D.$89,800.

Assume that Castle TV, Inc. uses the LIFO flow assumption. The cost of the 400 units in the year-end inventory is:

A.$109,600.

B.$179,600.

C.$89,800.

D.$70,000.

Assume that the replacement cost of this monitor at year-end is $265 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of this inventory by:

A.$3,600.

B.$0.

C.$5,400.

D.$1,800.

Assume that the replacement cost of this monitor at year-end is $255 per unit. Using LIFO flow assumption and the lower-of-cost-or-market rule, the ending inventory amounts to:

A.$109,600.

B.$102,000.

C.$70,000.

D.$179,600.

Answers: 2

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Castle TV, Inc. purchased 2,100 monitors on January 5 at a per-unit cost of $175, and another 2,100...

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