In 2021, Orear Company signed a contract to purchase 5,000 inventory items from a former competitor for $45,000. The estimated selling value of the individual items varies greatly, but it is believed total resale value is $60,000. If item A could be sold for $100 and item B sold for $160, using relative sales value the assigned costs should be options: A) $75 for item A and $120 for item B B) S12 for each item C) $25 for item A and $40 for item B D) $9 for each item

In 2021, Orear Company signed a contract to purchase 5,000 inventory items from a former competitor for $45,000. The estimated selling value of the individual items varies greatly, but it is believed total resale value is $60,000. If item A could be sold for $100 and item B sold for $160, using relative sales value the assigned costs should be options: A) $75 for item A and $120 for item B B) S12 for each item C) $25 for item A and $40 for item B D) $9 for each item

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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