Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. It was determined that the replacement cost is $18 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for for each unit in inventory.

$18

Explanation:

Data provided in the question

Cost of inventory to purchased an item = $20

Selling price of an item = $30

Replacement cost = $18

Based on the above information, the amount that should be reported on the balance sheet is the cost of inventory or market value which ever is lower

As we can see that the replacement cost is less than the cost of inventory so the same is to be reported

Therefore we ignored the selling price of an item

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the answer choices are:

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