Picton Co. prepares its estimate of LCM using the net realizable value. Inventory item X570 cost $45 and the item is currently selling in the market for $55 and selling costs are estimated to be $6. Picton expects to earn a proﬁt of $4 on the sale of this item. In its year-end ﬁnancial statements, Picton Co. should value this item at:
A) $49
B) $55
C) $45
D) $50

Question

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The Answer of Picton Co. prepares its estimate of LCM using the net realizable value. Inventory item X570 cost $45 and the item is currently selling in the market for $55 and selling costs are estimated to be $6. Picton expects to earn a proﬁt of $4 on the sale of this item. In its year-end ﬁnancial statements, Picton Co. should value this item at:
A) $49
B) $55
C) $45
D) $50

Picton Co Prepares Its Estimate of LCM Using the Net Realizable