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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A corporation has provided the following information about one of their products: Date Transaction Number of Units Cost per Unit 1/1 Beginning inventory 200 $140 6/5 Purchase 400 $160 11/10 Purchase 100 $200 During the year, 400 units were sold. What is cost of goods sold using the average cost method? Group of answer choices A)$48,000 b)$64,000 C)$50,000 d)$66,667 E)None of the above
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Given the following: Numberpurchased Costper unit Total January 1 inventory 30 $ 5 $ 150 April 1 50 8 400 June 1 40 9 360 November 1 45 10 450 165 $ 1,360 a. Calculate the cost of ending inventory using the LIFO (ending inventory shows 51 units). b. Calculate the cost of goods sold using the LIFO (ending inventory shows 51 units).
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Cost $ 59 99 59 119 39 Product 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 25% of selling price. A B с D E 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. Per Unit Replacement Cost $ 54 89 74 89 47 $ Cost Replacement cost Selling Price $ 79 119 99 149 49 59 $ 99 59 119 39 54 89 74 89 47 NRV NRV minus NP Market Per Unit Inventory Value
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Forest Company has five products in its inventory. Information about ending inventory follows. Unit Replacement Unit Selling Cost Price $23 Product Quantity 1,000 700 1,000 900 600 ABCDU А Unit Cost $17 22 10 14 21 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Required 1 Required 2 Required 3 $19 18 9 11 19 Complete this question by entering your answers in the tabs below. Product (units) A (1,000) B (700) C (1,000) D (900) E (600) Determine the carrying value of ending inventory, assuming the…
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A company has the following per unit original costs and market values for its inventory. Lower of cost or market is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50Part B: 75 units with a cost of $6, and replacement cost of $6.50Part C: 160 units with a cost of $3, and replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is: