In: Accounting
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 | 1.73 | 2.70 | 0.81 | 0.54 | ||||||||||||
1626 | 1,400 | 5.08 | 5.62 | 6.48 | 0.54 | 1.08 |
From the information above, determine the amount of Martinez
Company inventory.
The amount of Martinez Company’s inventory |
Item No. | Quantity | Cost per Unit | Cost to Replace | Estimated Selling Price | Cost of Completion and Disposal | Normal Profit | NRV | NRV less normal profit | Market | Lower of cost or market | Inventory value |
1320 | 1,600 | $3.46 | $3.24 | $4.86 | $0.38 | $1.35 | $4.48 | $3.13 | $3.24 | $3.24 | $5,184 |
1333 | 1,300 | 2.92 | 2.48 | 3.78 | 0.54 | 0.54 | $3.24 | $2.70 | $2.70 | $2.70 | $3,510 |
1426 | 1200 | 4.86 | 4.00 | 5.40 | 0.43 | 1.08 | $4.97 | $3.89 | $4.00 | $4.00 | $4,800 |
1437 | 1,400 | 3.89 | 3.35 | 3.46 | 0.27 | 0.97 | $3.19 | $2.22 | $3.19 | $3.19 | $4,466 |
1510 | 1100 | 2.43 | 2.16 | 3.51 | 0.86 | 0.65 | $2.65 | $2.00 | $2.16 | $2.16 | $2,376 |
1522 | 900 | 3.24 | 2.92 | 4.10 | 0.43 | 0.54 | $3.67 | $3.13 | $3.13 | $3.13 | $2,817 |
1573 | 3,400 | 1.94 | 1.73 | 2.70 | 0.81 | 0.54 | $1.89 | $1.35 | $1.73 | $1.73 | $5,882 |
1626 | 1,400 | 5.08 | 5.62 | 6.48 | 0.54 | 1.08 | $5.94 | $4.86 | $5.62 | $5.08 | $7,112 |
Total | $36,147 | ||||||||||
The amount of Martinez Company’s inventory = $36147 |