Ask Question
9 November, 10:37

Given the acquisition cost of product ALPHA is $34, the net realizable value for product ALPHA is $33.50, the normal profit for product ALPHA is $2.50, and the market value (replacement cost) for product ALPHA is $29.50, what is the proper per unit inventory price for product ALPHA?

+4
Answers (1)
  1. 9 November, 10:44
    0
    Answer: $31.00

    Explanation:

    Given that,

    Acquisition cost of product ALPHA = $34

    Net realizable value for product ALPHA = $33.50

    Normal profit for product ALPHA = $2.50

    Market value for product ALPHA = $29.50

    By applying LCM,

    Per unit inventory price for product ALPHA = Net realizable value - Normal profit for product

    = $33.50 - $2.50

    = $31.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Given the acquisition cost of product ALPHA is $34, the net realizable value for product ALPHA is $33.50, the normal profit for product ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers