The inventory of Royal Decking consisted of five products. Information about the December 31, 2016, inventory is as follows:

Per Unit

Product Cost Selling Price

A $220 $240

B $270 $280

C $140 $260

D $180 $320

E $130 $160

Costs to sell consist only of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost.

Required:

What unit value should Royal Decking use for each of its products when applying the lower of cost and net realizable value rule to units of inventory?

Product Cost NRV Per Unit Value

A $220

B $270

C $140

D $180

E $130