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Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are ms follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 Product 2 Product 3 $.97 $57 $27 25 92 47 Product Cost 6 12 Replacement cost 127 46 37 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? NRV 47 76 NRV-NP 12 19 Market Per Unit Inventory

Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are ms follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 Product 2 Product 3 $.97 $57 $27 25 92 47 Product Cost 6 12 Replacement cost 127 46 37 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? NRV 47 76 NRV-NP 12 19 Market Per Unit Inventory

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Herman 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 Product 1 $27 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Replacement cost 27 S 97 57 25 47 6 12 Product 2 $ 97 92 25 92 47 127 46 37 NRV Product 3 $57 47 76 12 19 NRV NP Market Per Unit Inventory Value
Transcribed Image Text:Herman 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 Product 1 $27 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Replacement cost 27 S 97 57 25 47 6 12 Product 2 $ 97 92 25 92 47 127 46 37 NRV Product 3 $57 47 76 12 19 NRV NP Market Per Unit Inventory Value
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