English

6 November, 14:50

5. Yang Company purchased 2,000 widgets and has 400 widgets in its ending inventory at a cost of

$90 each and a current replacement cost of $70 each. The net realizable value of each unit in the

ending inventory is $80. The ending inventory under lower-of-cost-or-market is:

(a) $36,000.

(b) $32,000.

(c) $28,000.

(d) None of the above.

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