Morris Company uses the lower of cost or market rule in valuing its inventory. The floor constraint for one item in the inventory is $68.20. The following is other information concerning this unit: $\begin{array}{ll}
\$ 4.00 & \text { Transportation costs } \
12.70 & \text { Normal profit margin } \
4.20 & \text { Packaging costs }
\end{array}$
The net realizable value for this item is

Question

Morris Company uses the lower of cost or market rule in valuing its inventory. The floor constraint for one item in the inventory is $68.20. The following is other information concerning this unit: $\begin{array}{ll}
\$ 4.00 & \text { Transportation costs } \
12.70 & \text { Normal profit margin } \
4.20 & \text { Packaging costs }
\end{array}$
 The net realizable value for this item is

Quizplus · Accepted Answer

The Answer of Morris Company uses the lower of cost or market rule in valuing its inventory. The floor constraint for one item in the inventory is $68.20. The following is other information concerning this unit: $\begin{array}{ll}
\$ 4.00 & \text { Transportation costs } \
12.70 & \text { Normal profit margin } \
4.20 & \text { Packaging costs }
\end{array}$
 The net realizable value for this item is