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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 2 question 45 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 45
Topic #: 2
[All IIA-CIA-Part3 Questions]

An organization has 1,000 units of a defect item in stock. Per unit, market price is $10; production cost is $4; and the defect selling price is $5. What is the carrying amount (inventory value) of defects at year end?

  • A. $0
  • B. $4,000
  • C. $5,000
  • D. $10,000
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Suggested Answer: B 🗳️

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[Removed]
1 month, 2 weeks ago
In compliance with GAAP, inventory values are to be calculated with the lower of the market price or cost to the company. B is correct
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ciacandidate
5 months, 1 week ago
Selected Answer: C
It's C, because the production cost mentioned does not include the materials. And the item requested is the carrying amount (inventory value).
upvoted 2 times
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