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Konan, Inc

Finance

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Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending

inventory:

Product Cost Replacement Cost Selling Price Cost to Sell Normal Profit

L-19 $40 $38 $50 $2 $11

M-23 52 40 60 10 8

N-05 20 24 30 2 6

Assuming Konan uses the FIFO method for costing its inventory, writedown of inventory value for item M-23 is:

Select one:

a. None of the answer choices are correct.

b. $2.

c. $10.

d. $0.

e. $8.