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25 July, 00:56

Given the acquisition cost of product Z is $80, the net realizable value for product Z is $72, the normal profit for product Z is $6, and the market value (replacement cost) for product Z is $75, what is the proper per unit inventory price for product Z?

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  1. 25 July, 02:59
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    The proper per unit inventory price for product Z is $72.

    Explanation:

    The inventory is valued at cost or Net Realizable Value (NRV) whichever is lower. Therefore, the proper per unit inventory price for product Z is $72.
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