A Company Had Been Selling Its Product for $20 Per

Multiple Choice

A company had been selling its product for $20 per unit,but recently lowered the selling price to $15 per unit.The company's current inventory consists of 200 units purchased at $16 per unit.The replacement cost of this merchandise is currently $13 per unit.At what amount should the company's inventory be reported on the balance sheet under the lower of cost or market rule?

A) $2,600
B) $3,200
C) $3,000
D) $4,000