Garcel Inc. held unfinished inventory at a cost of $$85,000$ with a sales value of $$125,000.$ The inventory will cost $$10,500$ to complete. The normal profit margin is $30\%$ of sales. The replacement cost of the inventory was $$75,000.$ What amount should Garcel report as inventory on the balance sheet under lower of cost or market? $$114,500$ $$85,000$ $$77,000$ $$75,00$

Since there is no mention whether the company is using Lifo method nor Fifo nor average method how can the answer be certain to $77,000?$

Why can't $85,000$ be an answer when assuming the company used fifo method which is a method comparing the original cost only with NRV$?$