Question: Question 2 : Replacement value and Net realizable value: Information: Products A B C D E F Cost $ 8.00 $ 6.50 $ 8.50 $
Question 2 :
Replacement value and Net realizable value:
Information:
| Products | A | B | C | D | E | F |
| Cost | $ 8.00 | $ 6.50 | $ 8.50 | $ 9.00 | $ 5.50 | $ 7.75 |
| Replacement Cost | 5.00 | 7.50 | 6.50 | 10.50 | 3.00 | 7.00 |
| Expected Selling Price | 12.00 | 5.00 | 7.00 | 10.00 | 6.00 | 8.00 |
| Cost to Complete or sale | 4.50 | 3.50 | 5.00 | 7.00 | 2.50 | 3.00 |
| Normal Profit (25%)
Instructions: [1] You will apply 25% 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. |
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