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General Accounting Discussions: Help me anwer this please!! Unit Value applying the lower of cost or market in valuing inventory.

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    • CommentAuthorejvinas
    • CommentTimeJan 18th 2010
     
    Prime Company manufactures and sells four products, the inventories of which are priced at cost or net realizable value whichever is lower. A normal profit of 30% is ussually maintained on each product. The ff is compiled as of Dec 31.

    Product Original Cost Cost to Dispose Estimated Selling Price Normal Selling Price
    A 700 150 800 700
    B 475 205 950 950
    C 255 50 300 350
    D 450 260 1000 900


    Required:
    Determine the unit value for each product applying the lower of cost or market in valuing inventory.

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