In: Accounting
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Item D | Item E | Item F | Item G | Item H | Item I | ||||
Estimated selling price | 130 | 98 | 95 | 85 | 105 | 80 | |||
Cost | 100 | 80 | 60 | 80 | 65 | 42 | |||
Replacement cost | 110 | 65 | 70 | 50 | 70 | 40 | |||
Estimated selling expense | 25 | 25 | 20 | 20 | 25 | 25 | |||
Normal profit | 30 | 18 | 25 | 27 | 22 | 20 | |||
NRV (Selling Price - Selling Expense) | 105 | 73 | 75 | 65 | 80 | 55 | |||
NRV - Normal profit | 75 | 55 | 50 | 38 | 58 | 35 | |||
MARKET | 105 | 65 | 70 | 50 | 70 | 40 | |||
LOWER OF COST OR MARKET | 100 | 65 | 60 | 50 | 65 | 40 | |||
Note : Market price is same as replacement cost, but if replacement cost is more than NRV then NRV will be the market value(as in Item D), Also market price should not be less then NRV-NP. | |||||||||