Misty Company Had 20,000 Units of Ending Inventory That Were

Multiple Choice

Misty Company had 20,000 units of ending inventory that were recorded at their cost of $5.00 per unit using the first-in, first-out (FIFO) method. The current replacement cost is $4.25 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule?

A) $100,000
B) $142,500
C) $120,000
D) $85,000