Paul Konerko Company Sells Product 2005WSC for $20 Per Unit

question 10

Multiple Choice

Paul Konerko Company sells product 2005WSC for $20 per unit.The cost of one unit of 2005WSC is $18, and the replacement cost is $17.The estimated cost to dispose of a unit is $4, and the normal profit is 40%.At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?

• A)$8.
• B)$16.
• C)$17.
• D)$18.