A Company Normally Sells Its Product for $40 Per Unit

question 170

Multiple Choice

A company normally sells its product for $40 per unit.However,the selling price has fallen to $30 per unit.This company's current inventory consists of 200 units purchased at $32 per unit.Replacement cost has now fallen to $26 per unit.Calculate the value of this company's inventory at the lower of cost or market.

• A)$5,200
• B)$6,400
• C)$6,000
• D)$8,000
• E)$7,000

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Definitions:

Nonlabor Income

Income received from sources other than employment or work effort, such as dividends, interest, or rent.

Quinces

A fruit related to apples and pears, with a yellow exterior and hard flesh, often used in cooking and making preserves.

Kumquats

Small, orange-colored, and edible citrus fruits with a sweet outer peel and tart inner flesh, commonly eaten whole or used in marmalades and jellies.

Kumquats

Small, edible, orange-like fruits that can be eaten whole, including the peel, known for their sweet rind and sour flesh.