Marr Corporation has two products in its ending inventory, each accounted for atthe lower of cost or market. A profit margin of 30% on selling price is considerednormal for each product. Specific data with respect to each product follows:Product Product 2Historical costReplacement costEstimated cost to complete/disposeEstimated selling price$40451080$705426130In pricing its ending inventory using the lower-of-cost-or-market, what unitvalues should Marr use for products #1 and #2, respectively?a. $40.00 and $60.00b. $46.00 and $65.00c. $40.00 and $65.00d. $45.00 and $54.00

Step taken for computing the inventory valuation has been shown as above.

Answered: Marr Corporation has two products in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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