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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Selling Price $ 70 110 90 140 Cost $ 50 Replacement Cost $ 45 Product 08 65 B 90 50 D. 110 80 E 30 38 40 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 30% of selling price. 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? (Do not round Intermediate calculations. Round final answers to 2 decimal places.) Replacement cost Per Unit Inventory Value Product Cost NRV NRV - NP Market %24 50 $ 45 $ 57.00 B 90 80 50.00 C 50 65 110 80 30.00 E 30 38

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Selling Price $ 70 110 90 140 Cost $ 50 Replacement Cost $ 45 Product 08 65 B 90 50 D. 110 80 E 30 38 40 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 30% of selling price. 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? (Do not round Intermediate calculations. Round final answers to 2 decimal places.) Replacement cost Per Unit Inventory Value Product Cost NRV NRV - NP Market %24 50 $ 45 $ 57.00 B 90 80 50.00 C 50 65 110 80 30.00 E 30 38

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...
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nonstration Problems The Inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Replacement Cost $ 45 Selling Price $70 110 Preduct Cost A $50 08 65 90 50 90 C D. 110 80 140 30 38 40 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 30% of selling price. 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? (Do not round Internediate calculations. Round final answers to 2 decimal places.) Replacement cost Per Unit Inventory Value Product Cost NRV NRV -NP Market 50 S 45 57.00 90 80 50.00 C. 50 65 110 80 30.00 30 38 Prey. 2 of 9 Next > Profile (1).pdf Profile pdf ama ndf Profile (1) .pdf %24 m.
Transcribed Image Text:nonstration Problems The Inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Replacement Cost $ 45 Selling Price $70 110 Preduct Cost A $50 08 65 90 50 90 C D. 110 80 140 30 38 40 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 30% of selling price. 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? (Do not round Internediate calculations. Round final answers to 2 decimal places.) Replacement cost Per Unit Inventory Value Product Cost NRV NRV -NP Market 50 S 45 57.00 90 80 50.00 C. 50 65 110 80 30.00 30 38 Prey. 2 of 9 Next > Profile (1).pdf Profile pdf ama ndf Profile (1) .pdf %24 m.
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