A Firm Is Writing Its Inventory Down to the Lower

Multiple Choice

A firm is writing its inventory down to the lower of cost or market. It has determined the following per unit costs and market prices for its product: $\begin{array}{ll}\text { Original cost } & \$ 104 \\\text { Sales price } & 120 \\\text { Selling cost } & 20 \\\text { Normal profit } & 18 \\\text { Replacement cost } & 78\end{array}$ Given these data, the firm should value its inventory at a per unit cost of

A) $104
B) $100
C) $82
D) $78