Problem 3 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
Problem 3 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
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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