CALCULATION OF INVENTORY COST PER UNIT ON THE BASIS OF LOWER OF COST OR MARKET VALUE
Replacement Cost of Inventory = $ 13.32 Per Unit
Sales Price = $ 26.62 - $ 7.97 = $ 18.65 Per unit
Original Cost Price Per Unit = $ 25.59 Per Unit
Cost per unit will be taken as $ 13.32 per unit
Value of inventory = 2,860 Units X $ 13.32 Per unit
Value of inventory = $ 38,095
Answer = Option D = $ 38,095
One inventory item has a sales price of $ 26.62 and selling expenses of $ 7.97....
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