Forester Company has five products in its inventory. Informationabout the December 31, 2021, inventory follows.
| Product | | Quantity | | Unit
Cost | | Unit
Replacement
Cost | | Unit
Selling
Price |
| A | | 800 | | $ | 13 | | | $ | 15 | | | $ | 19 | |
| B | | 600 | | | 18 | | | | 14 | | | | 21 | |
| C | | 500 | | | 6 | | | | 5 | | | | 11 | |
| D | | 900 | | | 10 | | | | 7 | | | | 9 | |
| E | | 600 | | | 17 | | | | 15 | | | | 16 | |
|
The cost to sell for each product consists of a 20 percent salescommission. The normal profit for each product is 30 percent of theselling price.
Required:
1. Determine the carrying value of inventory atDecember 31, 2021, assuming the lower of cost or market (LCM) ruleis applied to individual products.
Determine the carrying value of inventory at December 31, 2021,assuming the lower of cost or market (LCM) rule is applied toindividual products. (Do not round intermediate calculations.)
|
| | Product (units) | RC | NRV | NRV-NP | Market | Cost | Inventory carrying value | | A (800) | $12,000 | | | | | | | B (600) | 8,400 | | | | | | | C (500) | 2,500 | | | | | | | D (900) | 6,300 | | | | | | | E (600) | 9,000 | | | | | | | Total | $0 | $0 | $0 |
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