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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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
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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