The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:ProductABCDECost$53935311333ProductABсDEPer UnitReplacementCostSelling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is35% of selling price.S$ 4883688341Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units ofending inventory?Note: Do not round Intermediate calculations. Round final answers to 2 decimal places.CostReplacementcost53 $935311333SellingPrice$7311393488368831434341NRVNRV minus NPMarketPer UnitInventoryValue

Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product D Cost $ 53 93 53 113 33 Per Unit Replacement Cost $ 48 83 68 83 41 Selling Price $ 73 113 93 143 43 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 35% of selling price. 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?

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product D Cost $ 53 93 53 113 33 Per Unit Replacement Cost $ 48 83 68 83 41 Selling Price $ 73 113 93 143 43 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 35% of selling price. 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?

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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