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Handel Inc

question 38

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Handel Inc.values its inventory on an LCM basis.The following data came from the 2011 inventory, which consisted of two items:  Item # 130 Item # 140  Original cost $12,000$15,000 Selling price 15,00026,000 Estimated selling costs 5,00010,000 Replacement cost 13,00015,000 Normal profit margin 1,5001,000\begin{array}{lrr}&\text { Item \# 130}&\text { Item \# 140 }\\\hline\text { Original cost } & \$ 12,000 & \$ 15,000 \\\text { Selling price } & 15,000 & 26,000 \\\text { Estimated selling costs } & 5,000 & 10,000 \\\text { Replacement cost } & 13,000 & 15,000 \\\text { Normal profit margin } & 1,500 & 1,000\end{array}
-The appropriate carrying value for the entire inventory when applying the LCM rule using net realizable value to the inventory as a whole would be:

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Network Design

The strategic planning and arrangement of a network's components, including hardware and software, to ensure efficient communication and resource sharing.

Product Design

Product design entails the process of creating and developing new products by integrating art, technology, and business strategies to meet user needs and preferences.

Functional Design

The aspect of design focused on creating products that fulfill a specific function or purpose efficiently.

Materials Design

Involves the creation and manipulation of materials to achieve desired properties and functionalities for specific applications.

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