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Ray Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30%
Ray Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #2 Historical cost Replacement cost Estimated cost to dispose Estimated selling price Product #1 $10 $ 18 11 14 3 7 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = A/ Product 2 = A
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