Question
1. Given the historical cost of product Z is $40, the selling price of product Z is $50, costs to sell product Z are $6,
1. Given the historical cost of product Z is $40, the selling price of product Z is $50, costs to sell product Z are $6, the replacement cost for product Z is $41, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?
A)$42
B)$22
C)$40
D)$41
2. Given the acquisition cost of product Z is $80, the net realizable value for product Z is $72, the normal profit for product Z is $6, and the market value (replacement cost) for product Z is $75, what is the proper per unit inventory price for product Z?
A)$66
B)$75
C)$80
D)$72
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