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Question 5 Crane Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of
Question 5 Crane Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 20% on selling price is considered normal for each product Specific data with respect to each product follows: Product 11 Product 2 Historical cost $28 $55 Replacement cost 20 30 Estimated cost to dispose 25 Estimated selling price 56 86 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Crane use for products #1 and #2, respectively? O $30 and $42. O $ 20 and $42. O $20 and $ 30. O $ 30 and $ 31
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