Given the acquisition cost of product Z is $80, the net realizable value for product Z is $72, the normal profit for product Z is $6, and the market value (replacement cost) for product Z is $75, what is the proper per unit inventory price for product Z?
A) $80.
B) $75.
C) $66.
D) $72.

Question

Quizplus · Accepted Answer

The proper per unit inventory price is the lower of cost or net realizable value. The acquisition cost is $80, and the net realizable value is $72. Therefore, the inventory should be valued at $72.

Given the Acquisition Cost of Product Z Is $80, the Net