A Company Manufactures and Sells Four Products; the Related Inventories

Multiple Choice

A company manufactures and sells four products; the related inventories are valued at lower-of-cost-or-market.The company considers a profit margin of 20 percent of sales to be normal for all four products.The following information was compiled as of December 31: $\begin{array}{|l|l|l|l|l|}\hline \text { Product } & \text { Original cost} & \text { Cost to replace } & \begin{array}{l}\text { Estimated Cost } \\\text { to Complete and } \\\text { sell }\end{array} & \begin{array}{l}\text { Expected Selling } \\\text { Price }\end{array} \\\hline \text { A } & \$ 70 & \$ 84 & \$ 30 &\$160 \\\hline\text { B } & 94 & 90 & 41 &190 \\\hline \text { C } & 35 & 30 & 10 & 60 \\\hline\text { D } & 90 & 92 & 118 & 200 \\\hline\end{array}$ Using lower-of-cost-or-NRV,the reported unit amount of the ending inventory for Product D is:

A) $90
B) $92
C) $82
D) $118