What is the amount that should be used to value inventory

Reference no: EM131880661

Question: A. Given the historical cost of product Z is $20, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?

a. $18.

b. $20.

c. $21.

d. $22.

B. What is the amount that should be used to value the inventory under the lower-of-cost-or-market method?

a. $18.

b. $20.

c. $21.

d. $22.

Explain your work for both parts to get a thumbs-up.

Reference no: EM131880661

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