SkipedthinkPrederencesThe inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:Per UnitReplacementCont$.3873ProductABCDEProductABCOLCont$:438343Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is40% of selling price.D10323Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units ofending inventory?Note: Do not round intermediate calculations. Round final answers to 2 decimal places.ECost587331$ 43 $834310323Replacementcost8236573SellingPrice$ 6373103831333331NRVNRV minus NP< PrevMarket1 of 8Per UnitInventoryValueNext >

NRV is also written as net realizable value which is calculated by deducting the sales commission…

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product с D Product A B C Cost $ 43 83 (3 103 23 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. COE 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. D Per Unit Replacement Cont 8.38 73 58 73 31 Cost 103 23 Replacement cost $ 43 S 83 43 RRERE 38 73 Selling Price 73 8 63 103 83 133 33 31 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 с D Product A B C Cost $ 43 83 (3 103 23 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. COE 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. D Per Unit Replacement Cont 8.38 73 58 73 31 Cost 103 23 Replacement cost $ 43 S 83 43 RRERE 38 73 Selling Price 73 8 63 103 83 133 33 31 NRV NRV minus NP Market Per Unit Inventory Value

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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