Question

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 $ 40 $ 110 $ 70 Selling price 100 180 130 Costs to sell 6 80 30

Answer 1

Answer and Explanation:

Given:

                                 Product 1      Product 2         Product 3

Cost of product         $20                 $90                 $50

Selling price              $40                 $120                $70

Selling cost                $6                    $40                 $10

Computation:

                                          Product 1      Product 2         Product 3

Product Cost                         $20                 $90                 $50

N.R.V                              ($40-$6)=$34  ($120-$40)=$80  ($70-$10)=$60

Per Unit Inventory Value      $20                 $90                 $50