Question - The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows:
|
Product
|
Per Unit
|
|
Cost
|
Replacement Cost
|
Selling Price
|
|
A
|
$51
|
$46
|
$71
|
|
B
|
91
|
81
|
111
|
|
C
|
51
|
66
|
91
|
|
D
|
111
|
81
|
141
|
|
E
|
31
|
39
|
41
|
Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal gross profit percentage is 35% of selling price.
Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory?