Sunland Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E Item F Item G Item H Item I $ $ SA SA $ SA $ SA Item D $274 171 274 68 46 206 164 149 68 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. 160 Item E Item F $251 $217 68 182 164 68 46 182 160 68 46 Item G $205 182 68 57 46 Item H $251 114 160 68 46 Item I $205 82 68 68 46
Sunland Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E Item F Item G Item H Item I $ $ SA SA $ SA $ SA Item D $274 171 274 68 46 206 164 149 68 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. 160 Item E Item F $251 $217 68 182 164 68 46 182 160 68 46 Item G $205 182 68 57 46 Item H $251 114 160 68 46 Item I $205 82 68 68 46
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
N2.
Account
Transcribed Image Text:Sunland Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its
inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products
appear below.
Estimated selling price
Cost
Replacement cost
Estimated selling expense
Normal profit
Item D
Item E
Item F
Item G
Item H
Item I
GA
$
$
$
LA
$
$
$
Item D
$274
LA
171
274
68
46
206
164
149
68
160
Item E
68
$251
182
164
68
Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the
inventory items above.
46
Item F
$217
182
160
68
46
Item G
$205
182
68
57
46
Item H
$251
114
160
68
46
Item I
$205
82
68
68
46
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