Question
Jones Corporation has the following information of inventory at 12/31/2017 This is the first business year...
Jones Corporation has the following information of inventory at 12/31/2017 This is the first business year of the company.
Jones Corporation uses the Lower-of-Cost-or-Market (LCM) method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products G, H, I, J, K, L, M and N. Relevant per unit data for these products appear below.
|
Item No. |
Cost per unit |
Cost to Replace |
Estimated Selling Price |
Cost of Completion and Disposal |
Normal Profit margin (%) of selling price |
|
X |
3.63 |
3.34 |
4.8 |
1.94 |
18% |
Compute Net Realizable Value (NRV), NRV - normal profit (show your detail calculation), and use the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017
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