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: $\begin{array} { | l | l | l | l | l | } \hline \text { Product } & \text { Original Cost } & \text { Cost to Replace } & \text { Estimated Cost to Complete and sell } & \text { Expected Selling Price } \\\hline \text { A } & \$ 70 & \$ 84 & \$ 30 & \$ 160 \\\hline \text { B } & 94 & 90 & 41 & 190 \\\hline \text { C } & 35 & 30 & 10 & 60 \\\hline \text { D } & 90 & 92 & 118 & 200 \\\hline\end{array}$
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