Herman 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: Product 1 Product 2 Product 3Cost$20 $90 $50 Selling price 40 120 70 Costs to sell 6 40 10 Required:What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?ProductCostNRVPer Unit Inventory Value1 2 3

Inventory to be valued at Cost or NRV which ever is lower

Answered: Herman Company has three products in…

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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Herman 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:

	Product 1		Product 2	Product 3
Cost	$	20		$	90	$	50
Selling price		40			120		70
Costs to sell		6			40		10

Required:
What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?

Product	Cost	NRV	Per Unit Inventory Value
1
2
3

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