Decker Company has five products in its inventory. Information about the December 31 2011 inventory follows. The
Question:
Decker Company has five products in its inventory. Information about the December 31 2011 inventory follows.
The selling cost for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 40 percent of the selling price.
1. Determine the balance sheet inventory carrying value at December 31 2011 assuming the LCM rule is applied to individual products
2. Determined the balance sheet inventory carrying value at December 31 2011 assuming the LCM rule is applied to the entire inventory. Also assuming that Decker recognizes an inventory write down as a separate income statement item determine that amount of the loss.
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas