Problem 12-2 (AICPA Adapted) Prime Company manufactures and sells four products, the inventories of which are priced at cost or net realizable value whichever is lower. A normal profit of 30% is usually maintained on each product. The following information is compiled at year-end: Original Cost to Estimated Normal Product cost dispose selling price selling price 700 475 255 450 800 950 300 1,000 700 950 350 900 1 150 205 2 3. 50 4 260 Required: Determine the unit value for each product applying the lower of cost and net realizable value in measuring inventory. 348
Problem 12-2 (AICPA Adapted) Prime Company manufactures and sells four products, the inventories of which are priced at cost or net realizable value whichever is lower. A normal profit of 30% is usually maintained on each product. The following information is compiled at year-end: Original Cost to Estimated Normal Product cost dispose selling price selling price 700 475 255 450 800 950 300 1,000 700 950 350 900 1 150 205 2 3. 50 4 260 Required: Determine the unit value for each product applying the lower of cost and net realizable value in measuring inventory. 348
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2.5P
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