What is the net realizable value

Reference no: EM132853781

1) You make 4,000 units and sell them for $5 each. Your expenses related to this item total $14,000. What is the net realizable value (NRV)?

2) You make 4,000 units and sell them for $5 each. Your expenses related to this item total $8,000 fixed and $6,000 variable. What is the net realizable value?

3) You make 4,000 units that will sell for $5 each. You sold 3,000 units so far. Your expenses related to this item total $14,000. What is the net realizable value?

4) You sold 3,000 units for $5 each. No beginning inventory. You still have 1,000 units left. Your expenses related to this item total $14,000. What is the net realizable value?

5) You make 4,000 units of item A and sell them for $5 each. Your separable fixed and variable expenses related to this item total $14,000. What is the net realizable value of A? You make 2,000 units of item B and sell them for $3 each. Your separable fixed and variable expenses related to this item total $2,000. What is the net realizable value of B?

6) You have a $1,000 common or joint cost spent on making item A and item B (in question 4 above) BEFORE they became separate products. How would you allocate the $1,000 joint cost to item A and B based on the NRV method?

7) What is the total cost of making item A?

8) What is the cost per unit to make item A?

9) If we sell 75% of item A, what is the gross profit?

Reference no: EM132853781

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