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
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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
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.
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.
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Tatal Replecement Cost $129,800 99,900 47,000 33,300 Total Net Realizable Value $118,000 129,300 59,200 59,700 Product Total Cost $142,000 105,800 70,500 35,700 101 102 103 104 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) 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 market (LCM) rule is applied to individual products. Replacement cost Inventory Value Product Total Cost NRV NRV NP Market 129,800 S 118,000 129,300 101 %24 142,000 5 105,800 70,500 102 99,900 103 47,000…
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Total Cost TotalReplacement Cost Total NetRealizable Value 101 $ 163,000 $ 148,700 $ 135,100 102 120,800 114,000 147,600 103 80,400 53,600 67,900 104 41,100 38,400 69,000 The normal profit is 40% of total cost. Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.
The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales Beginning inventory Purchases, in chronological order Required: a. Calculate cost of goods sold and ending Inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic Inventory system): b. Assume that net income using the weighted-average cost flow assumption is $15,600. Calculate net Income under FIFO and LIFO. 790 units 220 units@ $4 310 units @ $5 410 units@ $6 220 units@ $7 Complete this question by entering your answers in the tabs below. Required A Required B Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): Note: Round unit cost to 2 decimal places. FIFO LIFO Weighted average Cost of Goods Sold Ending Inventory
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Total Cost Total NetRealizable Value 101 $ 120,000 $ 100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 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. Product Cost NRV Inventory Value 101 $120,000 $100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 $300,000 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting journal entry.