Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1] The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Selling Price Product Cost A $120 B 160 80 80 20 Product A B с D E $140 180 160 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? Cost 120 40 NRV Per Unit Inventory Value
Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1] The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Selling Price Product Cost A $120 B 160 80 80 20 Product A B с D E $140 180 160 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? Cost 120 40 NRV Per Unit Inventory Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1]
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:
Product Cost
$120
160
80
80
20
ABCDE
Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost.
Required:
What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule
to units of ending inventory?
Product
A
B
с
D
E
Per Unit
Selling Price
$140
180
160
120
40
Cost
NRV
Per Unit
Inventory
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Fba2f3cef-85a4-4bf8-8acc-dc4dfbff16f1%2Fq8v4345_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1]
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:
Product Cost
$120
160
80
80
20
ABCDE
Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost.
Required:
What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule
to units of ending inventory?
Product
A
B
с
D
E
Per Unit
Selling Price
$140
180
160
120
40
Cost
NRV
Per Unit
Inventory
Value
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