Accounting MCQ Accounting Chapter 9 Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Naim 00:32 Accounting Chapter 9

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Selling price----------620,000
disposal costs----------30,000
normal profit margin-- 80,000
replacement cost------520,000

What should be the carrying value of Montana's inventory?

A. $600,000.

B. $520,000.

C. $590,000.

D. $510,000.

Answer: B. $520,000.
NRV = $590,000

NRV - NP = $510,000
RC = $520,000
Designated market is RC = $520,000 which is less than cost.

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Accounting MCQ

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Learn More :

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