Given the acquisition cost of product Z is $80, the net realizable value for product Z is $72, the normal profit for product Z i

Question

3 years ago

9

Given the acquisition cost of product Z is $80, the net realizable value for product Z is $72, the normal profit for product Z i

s $6, and the market value (replacement cost) for product Z is $75, what is the proper per unit inventory price for product Z?

Business

1 answer:

VARVARA [1.3K] · Answer 1 · 2022-02-22T14:07:02+03:00

VARVARA [1.3K]3 years ago

3 0

Answer:

The proper per unit inventory price for product Z is $72.

Explanation:

The inventory is valued at cost or Net Realizable Value (NRV) whichever is lower. Therefore, the proper per unit inventory price for product Z is $72.