Inventory Write-Down
Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows:
Product A Product B
Historical cost $80 $95
Replacement cost 71 99
Estimated cost of disposal 32 27
Estimated selling price 150 120
Required:
What is the correct inventory value for each product?
Product A $
Product B $
$ per unit