Question

Please tell me correct answers for the ones I got wrong and put in the same format as the image. Thank you!

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Per Unit Replacement Cost $ 52 Cost $ 57 97 57 117 Selling Price $ 77 117 97 147 47 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. 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? (Do not round intermediate calculations. Round final answers to 2 decimal places.) Answer is complete but not entirely correct. Product Cost Replacement cost NRV NRV - NP Market $ $ 57 97 57 117 37 52 87 72 87 45 126.00 162.00% 144.00 119.07 > 37.60 31.80S 47.80 38.80 X 80.27 X 18.80 x 52.00 87.00 72.00 87.00 37.60 Ⓡ Per Unit Inventory Value $ 52.00 87.00 57.00 87.00 37.00

Answer 1

Answer:

NRV= Selling price - Selling costs
NRV - NP = NRV - 40% of selling price
Market = Middle of Replacement cost, NRV, NRV-NP
Per unit Inventory value = Lower of cost or market
Product	Cost	Replacement cost	NRV	NRV-NP	Market	Per unit Inventory value
A	57	52	62.6 [77-(77*15%)-(57*5%)]	31.8 [62.6-(77*40%)]	52	52
B	97	87	94.6 [117-(117*15%)-(97*5%)]	47.8 [94.6-(117*40%)]	87	87
C	57	72	79.6 [97-(97*15%)-(57*5%)]	40.8[79.6-(97*40%)]	72	57
D	117	87	119.1 [147-(147*15%)-(117*5%)]	60.3[119.1-(147*40%]	87	87
E	37	45	38.1 [47-(47*15%)-(37*5%)]	19.3 [38.1-(47*40%)]	38.10	37