Question Mode

Multiple Choice Question

Smith Company's inventory cost is $$100.$ The expected sales price is $$110,$ estimated selling costs are $$6.$ The normal gross profit ratio is $20\%$ of selling price. The replacement cost of the inventory is $$102.$ Smith Company uses the LIFO inventory method so must use the lower of cost or market approach and this inventory item should be valued at

Multiple choice question.

$$100$

$$102$

$$110$

$$104$