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 $ 26 $ 96 $ 56 Selling price 58 138 88 Costs to sell 6 52 16 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?

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?

Explanation:

                                    Product 1       Product 2       Product 3

Cost                                  $26                $96                $56

Selling price                     $58               $138                $88

Costs to sell                       $6                 $52                $16

net realizable value         $52                $86                $72

which is lower?            $26 (cost)      $86 (NRV)      $56 (cost)

the net realizable value = selling price minus any costs associated to the sales process

answer; /// egg production using the factory technique falls less than with the free range technique;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.