In: Accounting
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 | 1.94 | 3.03 | 0.91 | 0.61 | ||||||||||||
1626 |
1,300 | 5.69 | 6.29 | 7.26 | 0.61 | 1.21 |
From the information above, determine the amount of Kingbird
Company inventory.
The amount of Kingbird Company’s inventory |
$enter the dollar amount of Kingbird Company's inventory |
Item | Qty | Cost per Unit | Cost to replace | Estimated Selling Price | Cost of Completion and Disposal | Normal Profit | NRV | NRV - Normal Profit | Market | Lower of Cost or Market | Value of Inventry at lower of cost or market value |
1320 | 1500 | 3.87 | 3.63 | 5.45 | 0.42 | 1.51 | 5.03 | 3.52 | 3.63 | 3.63 | 5445 |
1333 | 1200 | 3.27 | 2.78 | 4.24 | 0.61 | 0.61 | 3.63 | 3.02 | 3.02 | 3.02 | 3624 |
1426 | 1100 | 5.45 | 4.48 | 6.05 | 0.48 | 1.21 | 5.57 | 4.36 | 4.48 | 4.48 | 4928 |
1437 | 1300 | 4.36 | 3.75 | 3.87 | 0.3 | 1.09 | 3.57 | 2.48 | 3.57 | 3.57 | 4641 |
1510 | 1000 | 2.72 | 2.42 | 3.93 | 0.97 | 0.73 | 2.96 | 2.23 | 2.42 | 2.42 | 2420 |
1522 | 800 | 3.63 | 3.27 | 4.6 | 0.48 | 0.61 | 4.12 | 3.51 | 3.51 | 3.51 | 2808 |
1573 | 3300 | 2.18 | 1.94 | 3.03 | 0.91 | 0.61 | 2.12 | 1.51 | 1.94 | 1.94 | 6402 |
1626 | 1300 | 5.69 | 6.29 | 7.26 | 0.61 | 1.21 | 6.65 | 5.44 | 6.29 | 5.69 | 7397 |
Total ending inventory value | 37665 | ||||||||||
Note 1: Market price is same as replacement cost, but if replacement cost is more than NRV then NRV will be the market value(as in 1437), Also market price should not be less then NRV-NP.otherwise NRV-Normal profit will be market price (As in Itme 1333 and Item 1522) | |||||||||||