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.