Homework

Question 2 :

Replacement value and Net realizable value:

Information:

Products	A	B	C	D	E	F
Cost	$ 7.50	$5.80	8.80	9.50	4.50	5.75
Replacement Cost	6.00	5.50	4.50	8.50	4.00	3.50
Expected Selling Price	10.00	4.00	7.00	7.50	6.00	8.00
Cost to Complete or sale	3.50	2.50	4.00	5.00	1.50	3.00
Normal Profit (15%)

Instructions:

[1] You will apply 15% to calculate the normal profit. (please do not use the one on the table. )

[2] You will create three tables to determine the Net Realizable Value = Ceiling ; Net Realization Value = Floor; Value will be used as the market amount

[3] Please explain each value will be used as the market amount

[4] Please provide a clear calculation and brief explanation.