Martha, Inc. had 21,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the FIFO method. The current replacement cost is $4.50 per unit. Which of the following amounts would be reported as ending Merchandise Inventory on the balance sheet using the

lowerofcostormarket

rule?

Question content area bottom

Part 1

A.

$262,500

B.

$189,000

C.

$94,500

D.

$168,000