Which of the following depicts the proper account balance after the application of the LCM rule?

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Consider the following data:

Which of the following depicts the proper account balance after the application of the LCM rule?
A Ending Inventory balance will be $119,000.
B Ending Inventory balance will be $115,000.
C Cost of Goods Sold will be $161,000.
D Cost of Goods Sold will be $169,000.
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Answer : A =Ending Inventory balance will be $115,000

Explaination

Under LCM rule we will show the inventory at the lower of cost or market value

in the above sum we have been given th following figure.

ending inventory cost $ 115,000

ending inventory replacable cost ( i.e. Market value is) $ 119,000

so we will chose lower of these and that is $ 115,000

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