Question 7

Given the acquisition cost of product Dominoe is $32, the net realizable value for product Dominoe is $30, the normal profit for product Dominoe is $3, and the market value (replacement cost) for product Dominoe is $31, what is the proper per unit inventory price for product Dominoe applying LCM?

a)$32.

b)$31.

c)$30.

d)$27.