please show solution Oslo Corporation has two products in it

please show solution

Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows 6. Product #1 Product #2 $ 18 14 $10 Historical cost Replacement cost Estimated cost to dispose

Solution

A. $10 and $16

PRODUCT 1:

RC = 11

Ceiling: NRV = 20 - 3 = 17

Floor: NRV - PM = 17 - (20 * .30) = 11

Market = $11 and cost = $10

LCM = $10

PRODUCT 2 :

RC = 14

Ceiling: NRV= 33 - 7 = 26

Floor: NRV - PM = 26 - (33 * .30) = $16.1

market = $16.1 and cost = $18

LCM = $16.1