A Company Normally Sells Its Product for $20 Per Unit

question 28

Multiple Choice

A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current inventory consists of 200 units purchased at $16 per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of this company's inventory at the lower of cost or market.

• A) $2,550.
• B) $2,600.
• C) $2,700.
• D) $3,000.
• E) $3,200.

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Definitions:

Guard Cells

Specialized cells located within the epidermis of leaves, stems, and various organs responsible for controlling gas exchange and limiting water loss through the opening and closing of stomata.

Stoma

Pores found on the leaf and stem surfaces that facilitate gas exchange between the plant's internal tissues and the atmosphere.

Companion Cells

Specialized cells in the phloem of plants that support the function of sieve tube elements in transporting sugars.

Cuticle Cells

The outermost layer of cells in plants and some animals that provides protection and reduces water loss.