1.Given the acquisition cost of product Z is $36, the net realizable value for p
ID: 2543865 • Letter: 1
Question
1.Given the acquisition cost of product Z is $36, the net realizable value for product Z is $32, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $28, what is the proper per unit inventory price for product Z using LCNRV?
2. Techno uses the LIFO cost method. Given the acquisition cost of product Z is $36, the net realizable value for product Z is $32, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $28, what is the proper per unit inventory price for product Z using LCM?
Explanation / Answer
1. per unit inventory price for product Z using LCNRV is $ 28 Per unit Because the It is the least price at which Product Z is Selling or to be replaced in current value.which is price as per LCNRV
2. per unit inventory price for product Z using LCM is $ 36 Per Unit because company is follwing LIFO Cost Method (LCM) which say that the last purchase price of the unit will be use for the calculation of the Inventory.