nThe inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:ProductABCDEProductCost$ 5898ADCOE58118А38Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is40% of selling price.Per UnitReplacementCostRequired: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.$ 5388738846CostReplacement.costSellingPrice$ 781189814848$ 58 $9858118385388738846NRVNRV minus NPMarketPer UnitInventory.Value

Lower of Cost or Market(LCM):inventory is valued using the accounting principle known as Lower of…

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Cost $ 58 98 8 C D 58 118 E 38 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 40% of selling price. Per Unit Replacement Cost $ 53 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 88 73 88 46 58 $ 98 58 118 38 Replacement cost Selling Price $ 78 118 98 148 48 53 88 73 88 46 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 C D E Product A Cost $ 58 98 8 C D 58 118 E 38 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 40% of selling price. Per Unit Replacement Cost $ 53 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 88 73 88 46 58 $ 98 58 118 38 Replacement cost Selling Price $ 78 118 98 148 48 53 88 73 88 46 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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As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows: Item Quantity on hand Unit cost (Acme uses LIFO) Replacement cost Normal profit Expected selling price Estimated disposal costs A 75 $405 $625 $750 $1,500 $100 B 24 $310 $300 $230 $400 $25 C 51 $775 $800 $300 $1,000 $250 Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare the entry Acme should make
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Ibe Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending inventory units of 24,000 60% complete. Conversion costs of beginning inventory of P9,800; current period conversion costs of P204,125. The unit conversion cost using weighted average method is: 0.70 none of the choices 0.86 0.82
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Information pertaining to the inventory of Palette Company follows. LIFO Selling Replacement Cost Price Cost Category: Supreme Item A $5,600 $6,400 $4,800 Item B 7,200 7,200 7,680 Item C 17,600 17,600 16,800 Category: Classic Item X 28,800 28,800 30,400 Item Y 35,200 42,400 41,600 Item Z 56,000 48,000 52,800 The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items. What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) each individual item and (b) to each inventory category? Select one: a. Inventory item: $147,200; Inventory Category: $147,200 b. Inventory item: $150,400; Inventory Category: $150,400 c. Inventory item: $143,520; Inventory Category: $150,400 d. Inventory item: $141,120; Inventory Category: $147,520
Ibe Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending inventory units of 24,000 60% complete. Conversion costs of beginning inventory of P9,800; current period conversion costs of P204,125. Using FIFO method, the unit cost is: none of the choices 0.0.82 0 0.70 0 0.86
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value on units in ending inventory: 20,000 per-unit product cost using absorption costing method: 130 units Dollar amount of the value of ending inventory using the absorption costing method: 2,600,000 per-unit product cost using variable costing method: 110 units dollar amount of the value of ending inventory using the variable costing method: 2,200,000 1. If you were advising the accounting department on whcih method to use, which would you recommend?
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Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 $ Cost Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product 1 $28 26 48 5 13 28 $ 98 58 Q Search Replacement cost 26 93 48 Product 2 $98 93 128 or 30 38 NRV Product 3 $58 48 60 10 20 W ENG 4x D 4:45 PM 11/27/2023
Ibe Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete; ending inventory units of 24,000 60% complete. Conversion costs of beginning inventory of P9,800; current period conversion costs of P204,125. Using FIFO method, the unit cost is: Group of answer choices 0.86 0.70 none of the choices 0.82