The inventory of Royal Decking consisted of five products. Information about ending inventory is asfollows:ProductABCDECost$ 90130905520ProductPer UnitCosts to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% ofcost.ABсDERequired:What unit value should Royal Decking use for each of its products when applying the lower of cost or netrealizable value (LCNRV) rule to units of ending inventory?Selling Price$ 1201601308530CostNRVPer UnitInventoryValue

Lower of Cost or NRV Method (LCNRV)The Lower of Cost or Net Realisable Value (LCNRV) technique is an…

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B с D E Cost $ 90 130 90 55 20 Per Unit Selling Price $ 120 160 130 85 30 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory?

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B с D E Cost $ 90 130 90 55 20 Per Unit Selling Price $ 120 160 130 85 30 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) 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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