Prime Company manufactures and sells four products, the inventories of which are priced at cost or net realizable value, whichever is lower. A normal profit of 30% is usually maintained on each product The following information is compiled on December 31: Appliances Units on hand Unit cost Net realizable value Product A 500 2,500 2,700 Product B 300 3,700 3,600 Car Accessories Product C 600 1,400 2,000 Required: Determine the ending inventory assuming the entity applies LCNRV. Product D 800 2,100 2,000

Prime Company manufactures and sells four products, the inventories of which are priced at cost or net realizable value, whichever is lower. A normal profit of 30% is usually maintained on each product The following information is compiled on December 31: Appliances Units on hand Unit cost Net realizable value Product A 500 2,500 2,700 Product B 300 3,700 3,600 Car Accessories Product C 600 1,400 2,000 Required: Determine the ending inventory assuming the entity applies LCNRV. Product D 800 2,100 2,000

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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