Lexington Company sells product 1976NLC for $60 per unit. The cost of one unit of 1976NLC is $54, and the replacement cost is $52. The estimated cost to dispose of a unit is $12, and the normal profit is 40%. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?
A) $24.
B) $48.
C) $52.
D) $54.

Question

Quizplus · Accepted Answer

The Answer of Lexington Company sells product 1976NLC for $60 per unit. The cost of one unit of 1976NLC is $54, and the replacement cost is $52. The estimated cost to dispose of a unit is $12, and the normal profit is 40%. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?
A) $24.
B) $48.
C) $52.
D) $54.

Lexington Company Sells Product 1976NLC for $60 Per Unit