Question 46 (2 points)

Mela Inc. had a beginning inventory of 800 units with a unit cost of $4.2.

During the period, company purchased:

1. May, 2017- 140 units for $4 per unit;

2. June, 2017- 60 units for $4.5 per unit.

Using the average cost method, calculate the value of the ending inventory of 200 units.

Question 46 options:

	$900
	$840
	$800
	$838

Question 47 (2 points)

The lower-of-cost-or-market (LCM) method is an inventory costing method that values inventory at the higher of its historical cost or its current market (replacement) cost.

Question 47 options:

	True
	False