A company's total cost of FIFO inventory was $329,000 and its current replacement cost is $307,000.Under the lower cost or market,the amount reported should be $329,000.

Question

Quizplus · Accepted Answer

Under the lower cost or market rule, inventory is reported at the lower of its cost or market value. Since the replacement cost of the inventory ($307,000) is lower than the recorded cost of $329,000, the inventory should be reported at its market value of $307,000. Therefore, the correct answer is B.

A Company's Total Cost of FIFO Inventory Was $329,000 and Its