Decker Company has five products in its inventory. Information about the December 31, 2016, inventory follows. Unit Selling Unit Product Quantity Cost Price 1,000 $10 $16 15 B 800 18 600 3 D 200 600 14 13 The cost to sell for each product consists of a 15 percent sales commission. Required: 1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products.
Decker Company has five products in its inventory. Information about the December 31, 2016, inventory follows. Unit Selling Unit Product Quantity Cost Price 1,000 $10 $16 15 B 800 18 600 3 D 200 600 14 13 The cost to sell for each product consists of a 15 percent sales commission. Required: 1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Decker Company has five products in its inventory. Information about the December 31, 2016, inventory follows.
Unit
Selling
Unit
Product
Quantity
Cost
Price
1,000
$10
$16
15
B
800
18
600
3
D
200
600
14
13
The cost to sell for each product consists of a 15 percent sales commission.
Required:
1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable
value rule is applied to individual products.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6452daee-e962-46c0-8421-8484bf8b6178%2F3602c042-083a-40c0-83b6-b067efbcfa70%2Fn8atr0k.jpeg&w=3840&q=75)
Transcribed Image Text:Decker Company has five products in its inventory. Information about the December 31, 2016, inventory follows.
Unit
Selling
Unit
Product
Quantity
Cost
Price
1,000
$10
$16
15
B
800
18
600
3
D
200
600
14
13
The cost to sell for each product consists of a 15 percent sales commission.
Required:
1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable
value rule is applied to individual products.
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