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Han 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: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 20 90 50 Product 1 5:20 18 40 $ 6 5 Replacement cost Product 2 $50 85 120 40 18 $ 85 40 30 NRV Product 3 $:50 40 70 10 12 NRV minus NP 34 S 80✔ 60 Market Per Unit Inventory Value 29 S 34 S 50- 48 80✔✔ 60 x 201 80 48

Han 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: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 20 90 50 Product 1 5:20 18 40 $ 6 5 Replacement cost Product 2 $50 85 120 40 18 $ 85 40 30 NRV Product 3 $:50 40 70 10 12 NRV minus NP 34 S 80✔ 60 Market Per Unit Inventory Value 29 S 34 S 50- 48 80✔✔ 60 x 201 80 48

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Han 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: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 20 $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 90 Product 1 $ 20 50 18 40 6 5 Replacement cost Product 2 $.90 85 18 S 85 40 120 40 30 NRV Product 3 $.50 40 70 10. 12 34 S 80✔ 60 NRV minus NP Market Per Unit Inventory Value 29 $ 34 S 50- 80✔✔ 48 ✔ 60 x 20 80 48 t
Transcribed Image Text:Han 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: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 Cost $ 20 $ 888 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? 90 Product 1 $ 20 50 18 40 6 5 Replacement cost Product 2 $.90 85 18 S 85 40 120 40 30 NRV Product 3 $.50 40 70 10. 12 34 S 80✔ 60 NRV minus NP Market Per Unit Inventory Value 29 $ 34 S 50- 80✔✔ 48 ✔ 60 x 20 80 48 t
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