Answer Exercise 9-5

Exercise 9-4 Lower of cost or market IL09-1] Herman 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 $ 90 85 120 40 $ 50 40 70 10 12 5 20 1B 40 Cost Replacenent cost Selling price Selling costs Normal profit margin Exercise 9-5 The inventory of Royal Decking consisted of five products. Information about the December 31 2018, inventory is as follows Per Unit Product Cost $ 40 80 40 100 20 Re nt cost Selling Price 35 60 100 80 130 30 70 70 28 Selling costs consist 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