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Question - Williams Company had the following balances and transactions during 2020:
Beginning Inventory: 20 units at $70
June 10: Purchased 30 units at $80
December 30: Sold 15 units
December 31: Replacement cost $60
Williams maintains its records of inventory on a perpetual basis using the first-in, first-out (FIFO) method. Calculate the amount of ending Merchandise Inventory on December 31, 2020 using the lower-of-cost-or-market rule.
This assessment task is designed to assess your understanding of topics 3 to 7, and your progress towards being able to: prepare basic financial statements
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