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:

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 the total inventory.

Question

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:

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 the total inventory.

Quizplus · Accepted Answer

The Answer of 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:

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 the total inventory.

Novelli's Nursery Has Developed the Following Data for Lower of Cost