The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product A Cost $ 80 Selling Price $ 100 B 120 160 C 80 120 D E 80 40 110 50 Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 5% 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? Product Cost NRV Per Unit Inventory Value A $ 80 B 56 104 104 с 80 D 80 E 40

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product A Cost $ 80 Selling Price $ 100 B 120 160 C 80 120 D E 80 40 110 50 Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 5% 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? Product Cost NRV Per Unit Inventory Value A $ 80 B 56 104 104 с 80 D 80 E 40

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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