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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![n
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
A
B
C
D
E
Product
Cost
$ 58
98
ADCOE
58
118
А
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
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.
$ 53
88
73
88
46
Cost
Replacement.
cost
Selling
Price
$ 78
118
98
148
48
$ 58 $
98
58
118
38
53
88
73
88
46
NRV
NRV minus NP
Market
Per Unit
Inventory.
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbf050c3-1a4d-4398-a9d8-05b955115230%2F9dfb285d-25a5-492c-bc65-ecbef904a905%2F4ro58b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:n
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
A
B
C
D
E
Product
Cost
$ 58
98
ADCOE
58
118
А
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
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.
$ 53
88
73
88
46
Cost
Replacement.
cost
Selling
Price
$ 78
118
98
148
48
$ 58 $
98
58
118
38
53
88
73
88
46
NRV
NRV minus NP
Market
Per Unit
Inventory.
Value
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