Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively?
A) $20.00 and $32.50.
B) $23.00 and $32.50.
C) $23.00 and $30.00.
D) $22.50 and $27.00.

Question

Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows:  In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively?
A) $20.00 and $32.50. 
B) $23.00 and $32.50. 
C) $23.00 and $30.00. 
D) $22.50 and $27.00.

Quizplus · Accepted Answer

The Answer of Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows:  In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively?
A) $20.00 and $32.50. 
B) $23.00 and $32.50. 
C) $23.00 and $30.00. 
D) $22.50 and $27.00.

Oslo Corporation Has Two Products in Its Ending Inventory, Each