Your company has 500 units in inventory that had been purchased for $12 each and that would currently cost $15 to replace. Your supplier has just announced the cost of these goods is rising to $16.5

a. Your company should make no adjustments to the inventory account

b. Your company should adjust the inventory account using the lower of the recent market values, which is $15.

c. Your company should adjust the inventory account using the cost, which is $12.00.

d. Your company should adjust the inventory account using the average of the recent market values, which is $14.50.