Product D E Product A B Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 20% of selling price. MOOO Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. C Cost $42 82 42 102 22 D E Per Unit Replacement Cost S Cost $ 37 72 57 72 30 102 22 Replacement cost 42 $ 82 42 selling Price $ 62 102 82 132 32 37 72 57 72 30 NRV NRV minus NP Market Per Unit Inventory Value
Product D E Product A B Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 20% of selling price. MOOO Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. C Cost $42 82 42 102 22 D E Per Unit Replacement Cost S Cost $ 37 72 57 72 30 102 22 Replacement cost 42 $ 82 42 selling Price $ 62 102 82 132 32 37 72 57 72 30 NRV NRV minus NP Market Per Unit Inventory Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject:acc
Transcribed Image Text:Product Cost
A
B
E
Product
AB
30E
$42
82
42
D
102
22
Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal
profit is 20% of selling price.
Ε
Required:
What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to
units of ending inventory?
Note: Do not round intermediate calculations. Round final answers to 2 decimal places.
Per Unit
Replacement
Cost
$37
S
Cost
72
57
72
30
Replacement
cost
42 $
82
42
102
22
Selling
Price
$ 62
102
82
132
32
37
72
57
72
30
NRV
NRV minus NP
Market
Per Unit
Inventory
Value
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