Jones Pharmaceuticals Is Reviewing the Value of One of Its

question 86

Multiple Choice

Jones Pharmaceuticals is reviewing the value of one of its more expensive drugs.The drug has been selling for $32, but a competitor has recently introduced a new product that provides the same benefits with fewer side effects.Therefore, the drug can only be sold for $12 per unit.Its unit purchase cost was $22.The current replacement cost is $10.If inventory is reported at lower of cost or net realizable value, what amount should be reported for the inventory of 30,000 units?

• A)$660,000
• B)$300,000
• C)$360,000
• D)$960,000

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