Major Company Uses the Lower of Cost or Market Rule

question 97

Multiple Choice

Major Company uses the lower of cost or market rule in valuing its inventory. The floor constraint for one item in the inventory is $58.20. The following is other information concerning this unit: $\begin{array} { l l } \$5.00 & \text { Transportation costs } \\12.70 & \text { Narmal profit margain } \\5.20 & \text { Packanging coste }\end{array}$

The market value for this item is

• A) $58.20
• B) $70.90
• C) $78.90
• D) $81.10

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