Exposition,Inc

Exposition,Inc.had 400 units of inventory on hand at the end of the year.These were recorded at a cost of $18 each using the last-in,first-out (LIFO) method.The current replacement cost is $15 per unit.The selling price charged by Exposition,Inc.for each finished product is $26.As a result of recording the adjusting entry as per the lower-of-cost-or-market rule,the gross profit will ________.

A) increase by $6,000
B) decrease by $6,000
C) increase by $1,200
D) decrease by $1,200