Wheres the answer choices.
Answer:
The unit value os $20 which Ross should use
Explanation:
LCM stand for or termed as Lower of Cost or Market approach- This approach is described as the inventory values at the historical cost or lesser than the replacement cost of market.
NRV stands for or termed as Net Realizable Value- This rule or method is defined as the estimated selling price, which the company expects to gather in the cash form from the customer through the sale of the inventory.
Computing the unit value as:
Given,
Cost price per unit is $20
Selling price per unit is $30
Selling cost per unit is $4
Using the NRV method:
NRV = Selling Price - Selling Cost
= $30 - $4
= $26
Using the lower of cost rule:
Cost = Cost of product
Cost = $20
Therefore, the $20 is the unit value which Rose should use.
Answer:
Incremental loss of Spock = $19,800
Incremental profit of Uhura = $12,300
Incremental profit of Sulu = $94,200
Explanation:
Note: See the attached excel for the determination the incremental profit or loss that each of the three joint products.
In the attached excl file, the following formulae are used:
a. Incremental sales value = Sales value of processed product - Sales value at split off point
b. Incremental profit (loss) = Incremental sales value - Costs to process further
Answer:
I am unsure of this answer
Explanation:
yes