Han Company has three products in its ending inventory. Specific per unit data at the end...

 

Transcribed Image Text:

Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product Cost 1 2 3 $ Product 1 $ 27 25 47 6 12 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Replacement cost 27 $ 97 57 Product 2 $ 97 25 92 47 92 127 46 37 Product 3 $ 57 47 NRV 76 12 19 NRV minus NP Market Per Unit Inventory Value On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $ 41,000 162,240 Retail $ 82,000 340,000 8,000 10,000 317,000 1.04 Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.) Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product Cost 1 2 3 $ Product 1 $ 27 25 47 6 12 Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Replacement cost 27 $ 97 57 Product 2 $ 97 25 92 47 92 127 46 37 Product 3 $ 57 47 NRV 76 12 19 NRV minus NP Market Per Unit Inventory Value On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $ 41,000 162,240 Retail $ 82,000 340,000 8,000 10,000 317,000 1.04 Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.)

Answer rating: 100% (QA)

To calculate the unit values for Han Companys products using the lower of cost or market LCM rule yo... View the full answer