1. Yes Corporation have one product in its ending inventory. They use the lower of cost or market. A profit margin of 30% on selling price is considered normal for the product. Specific data with respect to each product follows:

Product #1

Historical cost $20

Replacement cost 22

Cost to dispose 6

Selling price 40

In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Yes use for products #1?

a. $20.

b. $24.

c. $36.

d. $22.