On December 31,20A,the End of the Accounting Period,Dunn Company Has

Multiple Choice

On December 31,20A,the end of the accounting period,Dunn Company has on hand 5,000 units of a resale item which cost $21 per unit when purchased on June 15,20A.The selling price is $35 per unit.On November 30,20A,the quoted purchase cost of this item was $22 per unit; whereas on December 30,20A,the cost had dropped to $20 per unit.In view of the large quantity of units on hand,no purchases are anticipated in the next six to nine months.At what inventory amount should the 5,000 units be reported?

A) $100,000
B) $105,000
C) $110,000
D) $175,000