Castle TV, Inc. purchased 2,100 monitors on January 5 at a


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Castle TV, Inc. purchased 2,100 monitors on January 5 at a per-unit cost of $175, and another 2,100 units on January 31 at a per-unit cost of $274. In the period from February 1 through year-end, the company sold 3,800 units of this product. At year-end, 400 units remained in inventory. Assume that Castle TV, Inc. uses the FIFO flow assumption. The cost of the 400 units in inventory at year-end is: A.$179,600. B.$109,600. C.$70,000. D.$89,800. Assume that Castle TV, Inc. uses the LIFO flow assumption. The cost of the 400 units in the year-end inventory is: A.$109,600. B.$179,600. C.$89,800. D.$70,000. Assume that the replacement cost of this monitor at year-end is $265 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of this inventory by: A.$3,600. B.$0. C.$5,400. D.$1,800. Assume that the replacement cost of this monitor at year-end is $255 per unit. Using LIFO flow assumption and the lower-of-cost-or-market rule, the ending inventory amounts to: A.$109,600. B.$102,000. C.$70,000. D.$179,600.

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