Based on a physical inventory taken on December 31, an entity determined its inventory on...
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Accounting
Based on a physical inventory taken on December 31, an entity determined its inventory on a FIFO basis to be $70,000 with a replacement cost of $65,000. The entity estimated that after further processing costs of $8,000, the completed inventory could be sold for $75,000. The entity's normal profit margin is 30%. What amount should the entity report as inventory in its December 31 balance sheet under U. S. GAAP assuming FIFO is used?
$67,000
$70,000
$65,000
$44,500
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