Moore Company Purchased an Item for Inventory That Cost $20

question 103

Multiple Choice

Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. It was determined that the replacement cost is $18 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory?

• A) $18.
• B) $20.
• C)$7.
• D)$5.

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