Novelli's Nursery has developed the following data for lower of cost or market for its...
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Accounting
Novelli's Nursery has developed the following data for lower of cost or market for its products. The individual types of trees are separated as to their categories:
Selling
Cost to
Price
Cost
Replace
Ash
$1,800
$1,000
$800
Beech
2,200
1,600
1,400
Cedar
$2,500
$1,750
$1,800
Fir
3,600
3,350
3,200
Apple
$1,800
$1,400
$1,300
Cherry
2,300
1,800
1,700
The costs to sell are 10% of the selling price, and the normal profit margin on all trees is 20% of the selling price.
Required: Determine the reported inventory value assuming the lower of cost or market rule is applied to individual tree products.
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