Question

In: Accounting

Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....

Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

Item No.

Quantity

Cost per Unit

Cost to Replace

Estimated Selling Price

Cost of Completion and Disposal

Normal Profit
1320 1,300 $3.23 $3.03 $4.55 $0.35 $1.26
1333 1,000 2.73 2.32 3.54 0.51 0.51
1426 900 4.55 3.74 5.05 0.40 1.01
1437 1,100 3.64 3.13 3.23 0.25 0.91
1510 800 2.27 2.02 3.28 0.81 0.61
1522 600 3.03 2.73 3.84 0.40 0.51
1573 3,100 1.82 1.62 2.53 0.76 0.51
1626 1,100 4.75 5.25 6.06 0.51 1.01


From the information above, determine the amount of Blue Company inventory.

The amount of Blue Company’s inventory $

Solutions

Expert Solution

Item No.

Original Cost

Replacement Cost

Estimated Disposal Cost

Expected selling Price

Normal Profit on sales

1320

3.23

3.03

0.35

4.55

1.26

1333

2.73

2.32

0.51

3.54

0.51

1426

4.55

3.74

0.4

5.05

1.01

1437

3.64

3.13

0.25

3.23

0.91

1510

2.27

2.02

0.81

3.28

0.61

1522

3.03

2.73

0.4

3.84

0.51

1573

1.82

1.62

0.76

2.53

0.51

1626

4.75

5.25

0.51

6.06

1.01

A

B

C

D

E

F

G

Product

Current Replacement Cost

Net relisable Value(Expected selling price-Estimated disposal cost)

Net realisable value-Normal Profit on sales

Designated market value(Middle value among A/B/C)

Original Cost

Lower of cost or market value(i.e. lower of D or E)

No. of units

F*G

1320

3.03

4.2

2.94

3.03

3.23

3.03

1300

3939

1333

2.32

3.03

2.52

2.52

2.73

2.52

1000

2520

1426

3.74

4.65

3.64

3.74

4.55

3.74

900

3366

1437

3.13

2.98

2.07

2.98

3.64

2.98

1100

3278

1510

2.02

2.47

1.86

2.02

2.27

2.02

800

1616

1522

2.73

3.44

2.93

2.93

3.03

2.93

600

1758

1573

1.62

1.77

1.26

1.62

1.82

1.62

3100

5022

1626

5.25

5.55

4.54

5.25

4.75

4.75

1100

5225

Total

$26,724

If helpful, Thumbs UP please:)

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,500 $3.90 $3.66 $5.49 $0.43 $1.53 1333 1,200 3.29 2.81 4.27 0.61 0.61 1426 1,100 5.49 4.51 6.10 0.49 1.22 1437 1,300 4.39 3.78 3.90 0.31 1.10 1510 1,000 2.75 2.44 3.97 0.98 0.73 1522 800 3.66 3.29 4.64 0.49 0.61 1573 3,300 2.20...
Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item 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 1522 900 3.24 2.92 4.10 0.43 0.54 1573 3,400 1.94...
Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item 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 1522 900 3.24 2.92 4.10 0.43 0.54 1573 3,400 1.94...
Skysong Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Skysong Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,500 $3.39 $3.18 $4.77 $0.37 $1.33 1333 1,200 2.86 2.44 3.71 0.53 0.53 1426 1,100 4.77 3.92 5.30 0.42 1.06 1437 1,300 3.82 3.29 3.39 0.27 0.95 1510 1,000 2.39 2.12 3.45 0.85 0.64 1522 800 3.18 2.86 4.03 0.42 0.53 1573 3,300 1.91...
Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,600 $3.42 $3.21 $4.82 $0.37 $1.34 1333 1,300 2.89 2.46 3.75 0.54 0.54 1426 1,200 4.82 3.96 5.35 0.43 1.07 1437 1,400 3.85 3.32 3.42 0.27 0.96 1510 1,100 2.41 2.14 3.48 0.86 0.64 1522 900 3.21 2.89 4.07 0.43 0.54 1573 3,400 1.93...
Swifty Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Swifty Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,400 $3.30 $3.09 $4.64 $0.36 $1.29 1333 1,100 2.78 2.37 3.61 0.52 0.52 1426 1,000 4.64 3.81 5.15 0.41 1.03 1437 1,200 3.71 3.19 3.30 0.26 0.93 1510 900 2.32 2.06 3.35 0.82 0.62 1522 700 3.09 2.78 3.91 0.41 0.52 1573 3,200 1.85...
Kingbird Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Kingbird Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,500 $3.87 $3.63 $5.45 $0.42 $1.51 1333 1,200 3.27 2.78 4.24 0.61 0.61 1426 1,100 5.45 4.48 6.05 0.48 1.21 1437 1,300 4.36 3.75 3.87 0.30 1.09 1510 1,000 2.72 2.42 3.93 0.97 0.73 1522 800 3.63 3.27 4.60 0.48 0.61 1573 3,300 2.18...
Vaughn Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Vaughn Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,400 $3.30 $3.09 $4.64 $0.36 $1.29 1333 1,100 2.78 2.37 3.61 0.52 0.52 1426 1,000 4.64 3.81 5.15 0.41 1.03 1437 1,200 3.71 3.19 3.30 0.26 0.93 1510 900 2.32 2.06 3.35 0.82 0.62 1522 700 3.09 2.78 3.91 0.41 0.52 1573 3,200 1.85...
Tamarisk Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Tamarisk Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost Per Unit Cost to Replace Estimated Selling Price Cost of Completion & Disposal Normal Profit 1320 2000 3.68 3.45 5.18 0.40 1.44 1333 1700 3.11 2.65 4.03 0.58 0.58 1426 1600 5.18 4.26 5.75 0.46 1.15 1437 1800 4.14 3.57 3.68 0.29 1.04 1510 1500 2.59 2.30 3.74 0.92 0.69 1522 1300 3.45 3.11 4.37 0.46 0.58 1573 3800 2.07...
Whispering Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Whispering Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,800 $3.55 $3.33 $5.00 $0.39 $1.39 1333 1,500 3.00 2.55 3.89 0.56 0.56 1426 1,400 5.00 4.11 5.55 0.44 1.11 1437 1,600 4.00 3.44 3.55 0.28 1.00 1510 1,300 2.50 2.22 3.61 0.89 0.67 1522 1,100 3.33 3.00 4.22 0.44 0.56 1573 3,600 2.00...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT