Given the Historical Cost of Product Z Is $40, the Selling

question 99

Multiple Choice

Given the historical cost of product Z is $40, the selling price of product Z is $50, costs to sell product Z are $6, the replacement cost for product Z is $41, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method?

• A) $22.
• B) $40.
• C) $42.
• D) $41.

---

Definitions:

Frances Wright

A Scottish-born lecturer, writer, freethinker, feminist, abolitionist, and social reformer, who became a controversial figure in the early 19th century America due to her radical views.

Labor Workers

Individuals engaged in physical or manual work, often in industries such as manufacturing, construction, and services.

Northwest Europe

A geographic region comprising the northwestern countries of Europe, often including the United Kingdom, Ireland, the Low Countries, Scandinavia, and sometimes parts of France and Germany.

Immigrants

Individuals who move to a different country from their country of origin, typically for reasons such as employment, better living conditions, or escape from conflict.