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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