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Cullumber Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on
Cullumber Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #1 Product #2 Historical cost $7 $13 6 9 Replacement cost Estimated cost to dispose 4 6 Estimated selling price 14 23 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Cullumber use for products #1 and #2, respectively? O $6 and $10. $9 and $10. $9 and $10. $6 and $9
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