A company normally sells its product for $20 per unit. However,
the selling price has fallen to $15 per unit. This company's
current FIFO inventory consists of 200 units purchased at $16 per
unit. Net realizable value has now fallen to $13 per unit. What is
the amount of the lower cost of market adjustment the company must
make as a result of this decline in value?
a. $1000
b. $1400
c. $400
d. $600
e. $800
a. $1000
b. $1400
c. $400
d. $600
e. $800
