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Exercise 9-5 (Algo) Lower of cost or market (L09-1) The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, Inventory is as follows Selling Price Product A 3 Cost $45 35 Per Unit Replacement Cost $40 25 60 75 105 25 15 35 D 10 25 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round intermediate calculations, Round final answers to 2 decimal places.) Per UNIT Replacement Cost $40 75 Product A B C D E Selling Price $65 105 Cost $ 45 85 45 105 25 25 33 135 35 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round intermediate calculations. Round final answers to 2 decimal places.) Product Cost NRV NRV NP Market Per Unit Inventory Value $ 45 8 Replacement cost $ 40 75 60 75 33 85 45 105 25 D E

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