Question

Robust Inc. has the following information related to an item in its ending inventory. Product 66 has a cost of $6, 500, a replacement cost of $6, 100, a net realizable value of $6, 200, and a normal profit margin of $400. What is the final lower-of-cost-or-market inventory value for product 66? $5, 800. $6, 100. $6, 500. $6, 200. RS Corporation, a manufacturer of ethnic foods, contracted in 2010 to purchase 500 pounds of a spice mixture at $5.00 per pound, delivery to be made in spring of 2011. By 12/31/10, the price per pound of the spice mixture had risen to $5.60 per pound. In 2010, AJ should recognize a loss of $2, 500. a loss of $300. no gain or loss. a gain of $300.