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Herman Company has three products in its ending inventory. Specific per unit data for each of the products are as follows: Product 1 Product 2
Herman Company has three products in its ending inventory. Specific per unit data for each of the products are as follows:
Product 1 Product 2 Product 3 Cost $ 20 $ 90 $ 50
Replacement cost 18 85 40
Selling price 40 120 70
Disposal costs 6 40 10
Normal profit margin 5 30 12
Required: What unit values should Herman use for each of its products when applying the LCM rule to ending inventory assuming it prepares financial statements according to International Financial Reporting Standards?
Product NRV Cost Inventory Value 1 $ $ $ 2 3
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