The Inventory of Royal Decking consisted of five products. Information about December 31, 2016, inventory is as follows: Per Unit Product Cost Selling Price A $ 120 $ 140 B 170 180 C 80 160 D 80 120 E 20 40 Costs to sell consist only of a sales commission equal to 10% of the selling price and shipping costs equal to 5% of the cost. What unit value should Royal Decking use for each of its products when applying the lower cost and net realizable value rule to units of inventory?

The Inventory of Royal Decking consisted of five products. Information about December 31, 2016, inventory is as follows: Per Unit Product Cost Selling Price A $ 120 $ 140 B 170 180 C 80 160 D 80 120 E 20 40 Costs to sell consist only of a sales commission equal to 10% of the selling price and shipping costs equal to 5% of the cost. What unit value should Royal Decking use for each of its products when applying the lower cost and net realizable value rule to units of inventory?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 15E: Habicht Company was formed in 2018 to produce a single product. The production and sales for the...

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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 Product Cost Selling Price A $ 40 $ 60 B 80 100 C 40 80 D 100 130 E 20 30 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? Product Cost NRV Per Unit Inventory Value A B C D E
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost Selling Price A $ 170 $ 190 B 210 230 C 150 210 D 130 210 E 80 110 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost. Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory?
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
Decker Company has five products in its inventory. Information about the December 31, 2016, inventory follows. Unit Selling Unit Product Quantity Cost Price 1,000 $10 $16 15 B 800 18 600 3 D 200 600 14 13 The cost to sell for each product consists of a 15 percent sales commission. Required: 1. Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products.
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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 Product Cost Replacement Cost Selling Price A $40 35 60 B 80 70 100 C 40 55 80 D 100 70 130 E 20 28 30 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 30% of selling price. 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? Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value A $40 $35 B 80 70 C 40 55 D 100 70 E 20 28
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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 Product Cost Replacement Cost Selling Price A. $ 45 $ 40 $ 65 B. 85 75 105 C. 45 60 85 D. 105 75 135 D. 25 33 35 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost…
FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018: Product Units Unit Cost Net Realizable Value A 25 $ 7 $ 7 B 30 6 8 C 60 11 10 Instructions: Calculate FlinFlon's inventory at the Lower of Cost and Net Realizable Value (LCNRV). Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system.
The following information pertain to the only sale of inventory transaction of Orion Company in 2023: Date of sale - December 23, 2023; No. of units sold - 10,000; Selling price -P150 per unit; Right to return period - within 15 days: Estimated return for cash refund within 15 days - 5% of units sold; Estimated return for exchange of equal or greater value of merchandise - 10%; Cost per unit - P100 Question:- Compute the amount of sales to be recognized in 2023. A. P1,500,000 B. P1,475,000 C. P1,425,000 D. P1,000,000 - What amount of cost goods sold will appear in the 2023 statement of income? A. P925,000 B. P950,000 C. P975,000 D. P1,000,000
14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity UnitCost UnitSellingPrice A 1,200 $ 14 $ 20 B 1,000 19 22 C 800 5 10 D 400 9 8 E 800 18 17 The cost to sell for each product consists of a 10 percent sales commission. Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Tatum Company has four products in its inventory. Information about the Decemnber 31, 2021, Inventory is as follows: Total Net Realizable Value Product 101 Total Cost $134,000 97,000 67,000 37,000 $107,000 117,000 57,000 57,000 102 103 104 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 S. 134,000 107,000 102 97,000 117,000 57,000 67,000 37,000 103 104 57,000 S. 335,000 Required 2 > Prev 1 of 9 Next > Profile (1).pdf Profile.pdf Profile (1) .pdf