The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows:ProductABCDEProductACosts 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) ruleto units of ending inventory?BUDECost$ 18022016014090CPer UnitSelling Price$ 200240220240125CostNRVPer UnitInventoryValue

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

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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n The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product Cost $ 58 98 ADCOE 58 118 А 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 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. $ 53 88 73 88 46 Cost Replacement. cost Selling Price $ 78 118 98 148 48 $ 58 $ 98 58 118 38 53 88 73 88 46 NRV NRV minus NP Market Per Unit Inventory. Value
Presented below is information related to Sheffield Inc's inventory, assuming Sheffield uses lower-of-LIFO cost-or-market. Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin (per unit) Floor $ Skis $254.60 $ $ 284.08 25.46 272.02 42.88 Boots $142.04 194.30 10.72 140.70 Parkas $71.02 98.83 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. (Round answers to 2 decimal places, e.g. 52.75.) Ceiling $ 3.35 68.34 38.86 28.48 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answer to 2 decimal places, e.g. 52.75.) (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. (Round answer to 2 decimal places, e.g. 52.75.)
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A manufacturer has the following per-unit costs and values for its sole product: Cost $10.00 5.50 Current replacement cost Net realizable value 6.00 Net realizable value less normal profit 5.20 margin Under the first-in first-out (FIFO) cost method, what is the per-unit carrying value of inventory in the manufacturer's statement of financial position? O 55.20 $5.50 $6.00 $10.00
Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item. Note: Round each amount to the nearest dollar. #1 #2 #3 #4 #5 Estimated selling price $66 $76 $82 $100 $130 Original cost (LIFO) 45 48 60 63 90 Replacement cost 50 70 49 66 83 Inventory at the lower-of-cost-or-market $ (10) x $ (11) x $ (12) x $ (25) х $ (20) x
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
Information pertaining to the inventory of Palette Company follows. LIFO Selling Replacement Cost Price Cost Category: Supreme Item A $5,600 $6,400 $4,800 Item B 7,200 7,200 7,680 Item C 17,600 17,600 16,800 Category: Classic Item X 28,800 28,800 30,400 Item Y 35,200 42,400 41,600 Item Z 56,000 48,000 52,800 The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items. What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) each individual item and (b) to each inventory category? Select one: a. Inventory item: $147,200; Inventory Category: $147,200 b. Inventory item: $150,400; Inventory Category: $150,400 c. Inventory item: $143,520; Inventory Category: $150,400 d. Inventory item: $141,120; Inventory Category: $147,520
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