Williams Company had the following balances and transactions during 2014: $$\begin{array} { | l | l | }
\hline \text { Beginning Inventory } & 20 \text { units at } \$ 70 \
\hline \text { June 10 } & \text { Purchased } 30 \text { units at } \$ 80 \
\hline \text { December 30 } & \text { Sold } 15 \text { units } \
\hline \text { December 31 } & \text { Replacement cost } \$ 60 \
\hline
\end{array}$$ Williams maintains its records of inventory on a perpetual basis using the first-in, first-out method. Calculate the amount of ending Merchandise Inventory on December 31, 2014 using the lower-of-cost-or-market rule.

Question

Williams Company had the following balances and transactions during 2014: $$\begin{array} { | l | l | } 
\hline \text { Beginning Inventory } & 20 \text { units at } \$ 70 \
\hline \text { June 10 } & \text { Purchased } 30 \text { units at } \$ 80 \
\hline \text { December 30 } & \text { Sold } 15 \text { units } \
\hline \text { December 31 } & \text { Replacement cost } \$ 60 \
\hline
\end{array}$$ Williams maintains its records of inventory on a perpetual basis using the first-in, first-out method. Calculate the amount of ending Merchandise Inventory on December 31, 2014 using the lower-of-cost-or-market rule.

Quizplus · Accepted Answer

The Answer of Williams Company had the following balances and transactions during 2014: $$\begin{array} { | l | l | } 
\hline \text { Beginning Inventory } & 20 \text { units at } \$ 70 \
\hline \text { June 10 } & \text { Purchased } 30 \text { units at } \$ 80 \
\hline \text { December 30 } & \text { Sold } 15 \text { units } \
\hline \text { December 31 } & \text { Replacement cost } \$ 60 \
\hline
\end{array}$$ Williams maintains its records of inventory on a perpetual basis using the first-in, first-out method. Calculate the amount of ending Merchandise Inventory on December 31, 2014 using the lower-of-cost-or-market rule.

Williams Company Had the Following Balances and Transactions During 2014