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 $106. 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

a. $102
b. $106
c. $104
d. $110

C) $104

Explanation:

The lower of cost or market approach states that a company must record its merchandise inventory at the lowest cost between the replacement cost and the net realizable value.

net realizable value = selling price - selling costs = $110 - $6 = $104

replacement cost = $106

In this case the net realizable value is lower than the replacement cost.

by knowing conditionality

explanation:

3,500 beverages

explanation: