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Question - The inventory of Royal Decking consisted of 5 products. Information about the Dec 31, 2018 inventory is as follow:
Product Cost Replacement Cost Selling Cost
A $55 $50 75
B 95 85 115
C 55 70 95
D 115 85 145
E 35 43 45
Selling cost consist of a sales commission equal to 10% of selling price and shipping cost equal to 5% of the cost. The normal gross profit percentage is 30% of selling price.
Required: What unit should Royal Decking use for each of its products when applying the lower cost % market (LCM) rules to unit of ending inventory? They looking for NRV(Ceiling) and NRV-NP, Market and per unit inventory value.
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