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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 as follows: Product 1 Product 2 Product 3 Cost $ 35 $ 105 $ 65 Selling price 85 165 115 Costs to sell 8 70 25 Required: What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory

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Answer:

                     Cost   Selling Price   Costs to Sell   NRV  Inventory value

                        A              B                      C           D=(B-C) E=(lowerof A&D)

Product 1        35            85                    8                 77              35

Product 2       105          165                  70                95             95

Product 3        65           115                   25               90              65

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