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Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $40; replacement cost, $38; selling price, $50; selling

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Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $40; replacement cost, $38; selling price, $50; selling costs, $4. The normal profit is 40% of selling price. What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory? Answer is complete but not entirely correct. Unit value $ 36

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