Herman Company has three products in its ending inventory. Specific per unit data for each of the products are as follows:

Herman Company has three products in its ending inventory. Specific per unit data for each of the products are as follows:

	Product 1			Product 2			Product 3
Cost	$	20		$	90		$	50
Replacement cost		18			85			40
Selling price		40			120			70
Disposal costs		6			40			10
Normal profit margin		5			30			12

Required:

What unit values should Herman use for each of its products when applying the LCM rule to ending inventory?   Explanation: NRV = Selling price less disposal costs. NRV − NP = NRV less normal profit margin. Designated Market Value = [Middle value of (RC), (NRV) & (NRV − NP)] Per Unit Inventory Value = [Lower of (Designated Market Value) and (Cost)]