Shipman,Inc

question 11

Multiple Choice

Shipman,Inc.has 6 units in inventory on December 31.The units were purchased in November for $200 each.The price lists from suppliers indicate the current replacement cost of the item to be $198 each.What is the effect on gross profit if Shipman values its ending merchandise inventory using the lower-of-cost-or-market rule?

• A)The gross profit would increase by $2.
• B)The gross profit would not be affected.
• C)The gross profit would decrease by $12.
• D)The gross profit would increase by $12.

---

Definitions:

Sleep Alarm

A device designed to awaken a person at a specified time, often used to ensure adequate sleep duration.

Nightmare Disorder

A sleep disorder characterized by frequent, vivid, and distressing dreams that disrupt sleep and can cause distress or impairment in social, occupational, or other important areas of functioning.

Night Terror Disorder

A sleep disorder causing feelings of terror or dread, and typically occurs during the first hours of stage 3-4 non-REM sleep and can cause significant distress.

REM Sleep Behavior Disorder

A sleep disorder where individuals physically act out their dreams during REM sleep, often resulting in injury or disturbance.