Lower-of-cost-or-market (LCM) is to be applied to the following situation: Cost, $10; Net realizable value, $8; Replacement cost, $7; Net realizable value less normal profit, $7.50. One unit in inventory should be valued at:
A) $7.00
B) $7.50
C) $8.00
D) $10.00

Question

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The Answer of Lower-of-cost-or-market (LCM) is to be applied to the following situation: Cost, $10; Net realizable value, $8; Replacement cost, $7; Net realizable value less normal profit, $7.50. One unit in inventory should be valued at:
A) $7.00
B) $7.50
C) $8.00
D) $10.00

Lower-Of-Cost-Or-Market (LCM) Is to Be Applied to the Following Situation