At what amount will the widgets be reported

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Q1. ACME Company purchases for resale 1,000 widgets for $38 each. At year end, the replacement cost is $37 per widget, the estimated selling price is $63 per widget, the disposal cost is $8 per widget, and the estimated markup is $15 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet?

$39,000

$37,000

$55,000

$40,000

 $38,000

Q2. ACME Company purchases for resale 1,000 widgets for $64 each. At year end, the replacement cost is $63 per widget, the estimated selling price is $68 per widget, the disposal cost is $7 per widget, and the estimated markup is $10 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet?

$63,000

$51,000

$64,000

$62,500

$61,000

Reference no: EM132351091

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