The inventory of Royal Decking consisted of five products. Information about the December 31, 2016, inventory is as follows:
|
|
Per Unit
|
|
|
|
|
Product
|
Cost
|
Selling Price
|
|
|
A
|
$
|
150
|
|
$
|
170
|
|
|
|
|
|
B
|
|
200
|
|
|
210
|
|
|
|
|
|
C
|
|
150
|
|
|
200
|
|
|
|
|
|
D
|
|
110
|
|
|
190
|
|
|
|
|
|
E
|
|
70
|
|
|
90
|
|
|
|
|
|
|
Costs to sell consist only 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
|
Product
|
Cost
|
NRV
|
Per Unit Inv. Value
|
|
A
|
150
|
|
|
|
B
|
200
|
|
|
|
C
|
150
|
|
150
|
|
D
|
110
|
|
110
|
|
E
|
70
|
|
70
|
The inventory of Royal Decking consisted of five products. Information about the December 31, 2016, inventory is as follows:
| |
Per Unit
|
| |
|
|
Product
|
Cost
|
Selling Price
|
|
|
A
|
$
|
150
|
|
$
|
170
|
|
|
|
|
|
B
|
|
200
|
|
|
210
|
|
|
|
|
|
C
|
|
150
|
|
|
200
|
|
|
|
|
|
D
|
|
110
|
|
|
190
|
|
|
|
|
|
E
|
|
70
|
|
|
90
|
|
|
|
|
| |
Costs to sell consist only 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
|
Product
|
Cost
|
NRV
|
Per Unit Inv. Value
|
|
A
|
150
|
|
|
|
B
|
200
|
|
|
|
C
|
150
|
|
150
|
|
D
|
110
|
|
110
|
|
E
|
70
|
|
70
|