Chapter 9 Homework Problems - Chapter 9 Homework...

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Chapter 9 HomeworkInventories: Additional Issues1.Herman Company has three products in its ending inventory. Specific per unit data for each ofthe products are as follows:Product 1Product 2Product 3Cost$35$105$ 65Replacement cost3313055Selling price85165115Disposal costs87025Normal profit margin76027What unit values should Herman use for each of its products when applying the LCM rule toending inventory?
2.The inventory of Royal Decking consisted of five products. Information about the December 31,2013, inventory is as follows:Per UnitProductCostReplacement CostSelling PriceA$220$125$240B260160280C140155260D180150320E130155160Disposal costs consist only of a sales commission equal to 10% of selling price and shipping costsequal to 10% of cost. The normal gross profit percentage is 30% of selling price.What unit value should Royal Decking use for each of its products when applying the LCM rule tounits of inventory?

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Term
Spring
Professor
N/A
Tags
NRV

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