Given the acquisition cost of product Dominoe is $29, the net realizable value for product Dominoe is $26, the normal profit for product Dominoe is $3, and the market value (replacement cost) for product Dominoe is $27, what is the proper per unit inventory price for product Dominoe?
A) $27.
B) $23.
C) $26.
D) $29

Question

Quizplus · Accepted Answer

The proper per unit inventory price for product Dominoe is the lower of net realizable value and market value, which in this case is $26. This price already takes into consideration the normal profit, so there is no need to add it.

Given the Acquisition Cost of Product Dominoe Is $29, the Net