Based on a physical inventory taken on december 31, 20x1, chewy co. determined its chocolate inventory on a fifo basis at $26,000 with a replacement cost of $20,000. chewy estimated that, after further processing costs of $12,000, the chocolate could be sold as finished candy bars for $40,000. chewy's normal profit margin is 10% of sales. what amount should chewy report as chocolate inventory on its december 31, 20x1, balance sheet? a. $28,000b. $26,000c. $24,000d. $20,000

The correct option is B

Explanation:

The amount which is to be reported as the chocolate inventory on the balance sheet date December 31, 20X1 is the $26,000 because on grounded of physical inventory which is taken on the December 31, 20X1, was $26,000.

Therefore, Chewy will be having a $26,000 amount of inventory of chocolate on the account in order to produce the candy bars and then sell them in the market to earn the profit.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o