Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 20 90 50 Product 1 5:20 18 40 $ 6 5 Replacement cost Product 2 $50 85 120 40 18 $ 85 40 30 NRV Product 3 $:50 40 70 10 12 NRV minus NP 34 S 80✔ 60 Market Per Unit Inventory Value 29 S 34 S 50- 48 80✔✔ 60 x 201 80 48
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 20 90 50 Product 1 5:20 18 40 $ 6 5 Replacement cost Product 2 $50 85 120 40 18 $ 85 40 30 NRV Product 3 $:50 40 70 10 12 NRV minus NP 34 S 80✔ 60 Market Per Unit Inventory Value 29 S 34 S 50- 48 80✔✔ 60 x 201 80 48
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 2MC: Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31,...
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