The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Cost $ 50 90 50 Product 110 30 A B C D E Per Unit Replacement Cost Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. $ $ 45 80 65 80 38 Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. Cost Replacement cost 50 $ 90 50 110 30 Selling Price $ 70 45 80 110 90 140 40 65 80 38 NRV NRV minus NP Market < Prex Per Unit Inventory Value 5 of 7 Next >
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Cost $ 50 90 50 Product 110 30 A B C D E Per Unit Replacement Cost Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. $ $ 45 80 65 80 38 Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. Cost Replacement cost 50 $ 90 50 110 30 Selling Price $ 70 45 80 110 90 140 40 65 80 38 NRV NRV minus NP Market < Prex Per Unit Inventory Value 5 of 7 Next >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...
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