The replacement cost of a lifo basis inventory item is below the net realizable value and above the net realizable value minus the normal profit margin. the original cost of the inventory item is below the net realizable value minus the normal profit margin. under the lower-of-cost-or-market (lcm) method, the inventory item should be measured at

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.