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The inventory of Royal Decking consisted of five products. Information about the December 31, 2011, inventory is as follows:Disposal costs consist only of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal gross profit percentage is 30% of selling price.
Required:
What unit value should Royal Decking use for each of its products when applying the LCM rule to units of inventory?
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