Answer:
correct option is d. $600
Explanation:
given data
sells product = $20 per unit
selling price fallen = $15 per unit
FIFO inventory = 200 units
purchased = $16 per units
Net realizable value fallen = $13 per unit
to find out
amount of the lower cost of market
solution
we know that here Company record inventory at lower
so market value or cost of the inventory at declined time
and here Market Adjustment is the Difference of the cost and the Market Value
so cost will be here
Cost = 200 × $16
cost = $3200
and
Net realizable value will be
Net realizable value = 200 × $13
Net realizable value = $2600
so that Market adjustment is the difference of
Market adjustment difference = $3200 - $2600
Market adjustment difference = $600
so correct option is d. $600
