Question

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:

Per Unit
Product Cost Selling Price
A $ 90 $ 110
B 130 150
C 90 130
D 55 85
E 20 30


Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% 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?

Product Cost NRV Per Unit Inventory Value
A $90
B 130
C 90
D 55
E 20
0 0
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Answer #1

NRV product A 10 Bri cost $90. 130 90 55 890 22 108 per cenit inventory a Valle $90i 122 90 55 2o 25 working notes on loob or

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