intermedaite accounting 433251
Aug 29, 2021 | Uncategorized
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Herman Company has three products in its ending inventory. Specific per unit data for each of the products are as follows:
|
|
Product 1 |
Product 2 |
Product 3 |
| Cost |
$ |
34 |
|
$ |
104 |
|
$ |
64 |
|
| Replacement cost |
|
32 |
|
|
127 |
|
|
54 |
|
| Selling price |
|
82 |
|
|
162 |
|
|
112 |
|
| Disposal costs |
|
7 |
|
|
68 |
|
|
24 |
|
| Normal profit margin |
|
6 |
|
|
58 |
|
|
26 |
|
|
| Required: |
|
What unit values should Herman use for each of its products when applying the LCM rule to ending inventory?
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Ceiling |
Floor |
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| Product |
RC |
NRV |
NRV Af?cAc‚¬” NP |
Designated Market Value |
Cost |
Per Unit Inventory Value |
| 1 |
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| 2 |
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| 3 |
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