To determine the inventory value for product M-23 using the FIFO method and valuing it at the lower of cost or market value, we need to follow these steps:
1. Replacement Cost: This is the cost to replace the item currently. For M-23, the replacement cost is [tex]$52.
2. Net Realizable Value (NRV): This is the selling price minus the cost of completion. For M-23:
\[
\text{NRV} = \text{Selling Price} - \text{Cost of Completion} = 60 - 10 = \$[/tex] 50
\]
3. NRV minus Normal Profit Margin: This is another measure of market value, calculated by subtracting the normal profit margin from the NRV. For M-23:
[tex]\[
\text{NRV minus Normal Profit} = \text{NRV} - \text{Normal Profit} = 50 - 8 = \$ 42
\][/tex]
4. Determine Market Value: The market value for inventory is the minimum of the replacement cost, the NRV, and the NRV minus normal profit. For M-23, we compare:
[tex]\[
\text{Replacement Cost} = \$ 52, \quad \text{NRV} = \$ 50, \quad \text{NRV minus Normal Profit} = \$ 42
\][/tex]
The minimum of these values is [tex]$42.
Since inventory is reported at the lower of cost or market value, the reported value of product M-23 will be $[/tex]42.
Therefore, the correct choice is:
[tex]\[
\boxed{42}
\][/tex]
