ANSWER:
Product | cost | replacement cost | NRV | NRV-NP | Market | per unit inventory value |
---|---|---|---|---|---|---|
A | $55 | $50 | $64.75 | $42.25 | $50 | $50 |
B | $95 | $85 | $98.75 | $64.25 | $85 | $85 |
C | $55 | $70 | $82.75 | $54.25 | $70 | $55 |
D | $115 | $85 | $124.75 | $81.25 | $85 | $85 |
E | $35 | $43 | $38.75 | $25.25 | $38.75 | $35 |
NRV = selling price - (selling price x 10%) - (cost x 10%)
NRV - NP = NRV - (Selling price x 30%)
Market is the middle value among replacement cost, NRV & NRV-NP.
per unit inventory value = lower of “cost” & “market”
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