The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product Cost $ 180 220 160 140 90 A B C D E Product Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. A Per Unit 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? BUDE C Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product Cost $ 180 220 160 140 90 A B C D E Product Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. A Per Unit 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? BUDE C Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...
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![The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
A
B
C
D
E
Product
A
Costs to sell consist of a sales commission equal to 10% 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?
BUDE
Cost
$ 180
220
160
140
90
C
Per Unit
Selling Price
$ 200
240
220
240
125
Cost
NRV
Per Unit
Inventory
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2Ff19fa3fb-5d98-40d7-9c67-7a25008feaa4%2Fblgyypn_processed.png&w=3840&q=75)
Transcribed Image Text:The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:
Product
A
B
C
D
E
Product
A
Costs to sell consist of a sales commission equal to 10% 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?
BUDE
Cost
$ 180
220
160
140
90
C
Per Unit
Selling Price
$ 200
240
220
240
125
Cost
NRV
Per Unit
Inventory
Value
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