The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product A Cost $ 80 Selling Price $ 100 B 120 160 C 80 120 D E 80 40 110 50 Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 5% 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? Product Cost NRV Per Unit Inventory Value A $ 80 B 56 104 104 с 80 D 80 E 40

The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Per Unit Product A Cost $ 80 Selling Price $ 100 B 120 160 C 80 120 D E 80 40 110 50 Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 5% 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? Product Cost NRV Per Unit Inventory Value A $ 80 B 56 104 104 с 80 D 80 E 40

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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I need help calculating not only the net realizable value for all four products but also calculating the ending inventory using the LOWER OF COST OR MARKET METHOD for- individual items, category, and total inventory (Please Show Calculations).
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The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product Cost $ 50 A B 90 C 50 D 50 E 10 Product A Per Unit Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 10% of cost. BUDE 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? C Selling Price $ 70 130 Cost 90 80 20 NRV Per Unit Inventory Value
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