The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:Per UnitTTTProductSelling Price$110CostA$ 901301581389855852030Costs to sell consist of a sales commission equal to 10% of selling price snd shipping costs equal to 10% of cost.Required:What unit value should Royal Decking use for esch of its products when applying the lower of cost or net reslizable value (LCNRV) ruleto units of ending inventory?Per UnitProductCostNRVInventoryValueADE

Lower of cost or net realisable is a method of valuation of inventory that is to be reported in the…

The inventory of Royal Decking consisted of five producta. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost selling Price $ 90 A 20 30 Costs to sell consist of a seles commission equal to 10% of selling price and shipping costs equel to 10% of cost. Required: Whet unit value should Royal Decking use for esch of its products when opplying the lower of cost or net reslizable value (LCNRV) rule to units of ending inventory? Per Unit Inventory Value Product Cost NRV A D

The inventory of Royal Decking consisted of five producta. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost selling Price $ 90 A 20 30 Costs to sell consist of a seles commission equal to 10% of selling price and shipping costs equel to 10% of cost. Required: Whet unit value should Royal Decking use for esch of its products when opplying the lower of cost or net reslizable value (LCNRV) rule to units of ending inventory? Per Unit Inventory Value Product Cost NRV A D

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:
Per Unit
TTT
Product
Selling Price
$110
Cost
A
$ 90
130
158
138
98
55
85
20
30
Costs to sell consist of a sales commission equal to 10% of selling price snd shipping costs equal to 10% of cost.
Required:
What unit value should Royal Decking use for esch of its products when applying the lower of cost or net reslizable value (LCNRV) rule
to units of ending inventory?
Per Unit
Product
Cost
NRV
Inventory
Value
A
D
E

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