In pricing inventory, it is necessary to consider whether replacement cost is lower than historical cost. When applying lower of cost or market tests, what basis should auditors use for each of the following categories of inventory:
• Raw materials
• Work-in-process
• Purchased finished goods

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The Answer of In pricing inventory, it is necessary to consider whether replacement cost is lower than historical cost. When applying lower of cost or market tests, what basis should auditors use for each of the following categories of inventory:
• Raw materials
• Work-in-process
• Purchased finished goods

In Pricing Inventory, It Is Necessary to Consider Whether Replacement