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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
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: Product 1 Cost Replacement cost Selling price Selling costs Normal profit 33 55 7 20 Product 2 $105 100 135 40 45 Product 3 5 65 55 75 11 27 Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending Inventory? Product Cost Replacement cont NRV NRV - NP Market Per Unit Inventory Value 5 33 1 2 3 35 5 105 85 100 55
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