Simm Co. has determined its December 31 inventory on a FIFO basis to be $400,000. Information pertaining to that inventory follows:
|
Estimated selling price |
$403,000 |
|
Estimated cost of disposal |
20,000 |
|
Normal profit margin |
60,000 |
|
Current replacement cost |
360,000 |
Simm records losses that result from applying the lower of cost or market rule. At December 31, what should be the amount of Simm’s inventory?
- $400,000
- $388,000
- $360,000
- $328,000