Homework Answers
Correct answer---------$42
Working
If we want to value inventory on the basis of lower of cost or market value then we have to first calculate market value.
To calculate market value an easy method is used in this question. We will take the middle value of the given below values to ascertain market value.
| Replacement value | NRV | NRV minus Normal Profits |
.
| Cost | Replacement cost | NRV | NRV-NP | Market | Per unit Inventory Value |
| $ 42.00 | $ 43.00 | $ 44.00 | $ 25.20* | $ 43.00 | $ 42.00 |
*44-(47 x 40%)=$25.20
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PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! The inventory of Royal Decking consisted of five product...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE
THANK YOU!
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PLEASE PUT SOLUTION 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: Per Unit Selling Price S 77 Replacement Cost 52 Product Cost 57 A В 97 87 117 C 57 72 97 D 117 87 147 45 E 37 47 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of...
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