Martha Company Had 21,000 Units of Ending Inventory That Were

Martha Company had 21,000 units of ending inventory that were recorded at the cost of $7.00 per unit using the FIFO method.The current replacement cost is $4.25 per unit.Which of the following amounts would be reported as ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule?

A) $147,000
B) $236,250
C) $168,000
D) $89,250