The Inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B с D E Cost $ 52 92 52 112 32 Product ABCDE 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 40% of selling price. Per Unit Replacement Cost 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. $ Cost $ 47 82 67 82 40 Replacement cost 52 S 92 52 112 32 Selling Price $ 72 112 92 142 42 47 82 67 82 40 NRV + NRV minus NP Market Per Unit Inventory Value
The Inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B с D E Cost $ 52 92 52 112 32 Product ABCDE 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 40% of selling price. Per Unit Replacement Cost 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. $ Cost $ 47 82 67 82 40 Replacement cost 52 S 92 52 112 32 Selling Price $ 72 112 92 142 42 47 82 67 82 40 NRV + NRV minus NP Market Per Unit Inventory Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The Inventory of Royal Decking consisted of five products. Information about ending Inventory is as follows:
Per Unit
Replacement
Cost
Product
A
B
C
D
E
Product
Cost
$ 52
92
52
A
B
с
112
32
D
E
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
40% 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?
Note: Do not round Intermediate calculations. Round final answers to 2 decimal places.
S
Cost
$ 47
82
67
82
40
52 5
92
52
112
32
Replacement
cost
Selling
Price
$ 72
112
92
142
42
47
82
67
82
40
NRV
+
NRV minus NP
Market
Per Unit
Inventory
Value
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