The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Cost $ 58 98 8 C D 58 118 E 38 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 40% of selling price. Per Unit Replacement Cost $ 53 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 88 73 88 46 58 $ 98 58 118 38 Replacement cost Selling Price $ 78 118 98 148 48 53 88 73 88 46 NRV NRV minus NP Market Per Unit Inventory Value
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Cost $ 58 98 8 C D 58 118 E 38 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 40% of selling price. Per Unit Replacement Cost $ 53 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 88 73 88 46 58 $ 98 58 118 38 Replacement cost Selling Price $ 78 118 98 148 48 53 88 73 88 46 NRV NRV minus NP Market Per Unit Inventory Value
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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