Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30.It was determined that the replacement cost is $18 per unit.Using the lower-of-cost-or- market rule,what amount should be reported on the balance sheet for inventory?
A)$18
B)$20
C)$12
D)$30

Question

Quizplus · Accepted Answer

Inventory is reported on the balance sheet at replacement cost when it is less than cost.

Moore Company Purchased an Item for Inventory That Cost $20