Question
In: Accounting
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following...
Exercise 5-10 Lower of cost or market LO P2
Martinez Company's ending inventory includes the following
items.
| Product | Units | Cost per Unit | Market per Unit | ||||||
| Helmets | 37 | $ | 59 | $ | 55 | ||||
| Bats | 30 | 77 | 83 | ||||||
| Shoes | 51 | 96 | 100 | ||||||
| Uniforms | 55 | 41 | 41 | ||||||
Compute the lower of cost or market for ending inventory applied
separately to each product.
Solutions
Expert Solution
Answer------------$11,496
Working
| Inventory value | |||||
| Items | Cost per unit | Market value per unit |
Per Unit value as per Lower of cost or market value |
Number of units | Total Value |
| Helmets | $ 59.00 | $ 55.00 | $ 55.00 | 37 | $ 2,035.00 |
| Bats | $ 77.00 | $ 83.00 | $ 77.00 | 30 | $ 2,310.00 |
| Shoes | $ 96.00 | $ 100.00 | $ 96.00 | 51 | $ 4,896.00 |
| Uniforms | $ 41.00 | $ 41.00 | $ 41.00 | 55 | $ 2,255.00 |
| $ - | |||||
| Total ending inventory | $ 11,496.00 | ||||
ekkarill92 answered 1 year agoRelated Solutions
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Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320
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$4.50
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1437
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3.20
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0.90
1510
700
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0.80
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1522
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3.80
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Unit
Unit
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Market Value
C
200
$
13
$
12
D
190
15
12
K
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11
13
M
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8
12
Required
a. Determine the value of the ending inventory
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Debit
Credit
Merchandise inventory
$
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Prepaid selling expenses
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K. Emiko, Withdrawals
37,000
Sales
$
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Sales returns and allowances
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Sales discounts
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Quantity
Cost per Unit
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Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
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1,600
$3.46
$3.24
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$1.35
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1,300
2.92
2.48
3.78
0.54
0.54
1426
1,200
4.86
4.00
5.40
0.43
1.08
1437
1,400
3.89
3.35
3.46
0.27
0.97
1510
1,100
2.43
2.16
3.51
0.86
0.65
1522
900
3.24
2.92
4.10
0.43
0.54
1573
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1.94...
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basis.
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320
1,600
$3.46
$3.24
$4.86
$0.38
$1.35
1333
1,300
2.92
2.48
3.78
0.54
0.54
1426
1,200
4.86
4.00
5.40
0.43
1.08
1437
1,400
3.89
3.35
3.46
0.27
0.97
1510
1,100
2.43
2.16
3.51
0.86
0.65
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100
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420
152
176
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600
168
176
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268
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$66,740
December 31, 2020
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December 31, 2021
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$15
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55
$40
$125
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$60
$85
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$20
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per unit
per unit
total inventory
total inventory
inventory items
units
cost
market
cost
market
LCM Applied to individual items
caps
travel jerseys
windbreakers
signature stadium cushion
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