ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 165

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1,170,000

10.
Which of the following is true of normal shortages?
Under the lower-of-cost-or-market method, the replacement
cost of an inventory item would be used as the designated
market value
Which of the following is not a common disclosure for
inventories?
The use of a Purchase Discounts account implies that the
recorded cost of a purchased inventory item is its
Hay Company had January 1 inventory of $180,000 when it
adopted dollar-value LIFO. During the year, purchases were
$1,080,000 and sales were $1,800,000. December 31
inventory at year-end prices was $227,700, and the price
index was 110.