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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Definitions:

Overdose

The ingestion or exposure to a substance in quantities greater than are recommended or generally safe, leading to serious or potentially fatal symptoms.

Freezing Response

A behavioral reaction to a threatening stimulus characterized by immobility and the cessation of all movement, considered a survival mechanism.

Conditioned Emotional Response

The ability of a conditioned stimulus (CS) to elicit emotional reactions as a result of the association of the CS with a painful event.