Question:28 Given the historical cost of the product, Dominoe is $65, the selling price of product Dominoe is $90, costs to sell product Dominoe are $16, the replacement cost for product Dominoe is $60, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? a. $65. b. $56. c. $60. d. $74.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question:28
Given the historical cost of the product, Dominoe is $65, the
selling price of product Dominoe is $90, costs to sell product
Dominoe are $16, the replacement cost for product Dominoe is
$60, and the normal profit margin is 20% of sales price, what is
the amount that should be used to value the inventory under the
lower-of-cost-or-market method?
a. $65.
b. $56.
c. $60.
d. $74.
Transcribed Image Text:Question:28 Given the historical cost of the product, Dominoe is $65, the selling price of product Dominoe is $90, costs to sell product Dominoe are $16, the replacement cost for product Dominoe is $60, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? a. $65. b. $56. c. $60. d. $74.
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