Exposition, Inc. had 400 units of inventory on hand at the end of the year. These were recorded at a cost of $18 each using the last-in, first-out (LIFO) method. The current replacement cost is $15 per unit. The selling price charged by Exposition, Inc

for each finished product is $26. As a result of recording the adjusting entry as per the lower-of-cost-or-market rule, the gross profit will ________.
A) increase by $6,000
B) decrease by $6,000
C) increase by $1,200
D) decrease by $1,200

D .