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:

Recognise Objects

The ability to identify and name objects by interpreting sensory information.

Visual Information

Data and inputs received by the eyes and processed by the brain to form visual perception.

Brain

The central organ of the human nervous system, responsible for processing sensory information, and controlling thoughts, memories, emotions, and motor skills.

Hemisphere

Half of the terrestrial globe or celestial sphere, especially one of the halves into which the earth is divided, either north-south by the equator or east-west by a meridian.