The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product KAUGN D C D Cost $ 90 130 90 55 20 Selling Price $ 120 160 130 85 30
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product KAUGN D C D Cost $ 90 130 90 55 20 Selling Price $ 120 160 130 85 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1]
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
D
C
D
Product
A
8
C
Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost.
Required:
What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule
to units of ending inventory?
D
Cost
$90
130
90
55
20
E
Per Unit
Selling Price
$120
160
130
85
30
Cost
NRV
Per Unit
Inventory
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedf111bd-8104-414c-92c2-cbc9edca5ffc%2Fbc8cf50e-bd13-4e6a-b07c-f287f7cd9035%2Fmfprdmi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-2 (Algo) Lower of cost or net realizable value [LO9-1]
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
D
C
D
Product
A
8
C
Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost.
Required:
What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule
to units of ending inventory?
D
Cost
$90
130
90
55
20
E
Per Unit
Selling Price
$120
160
130
85
30
Cost
NRV
Per Unit
Inventory
Value
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