Question

In: Accounting

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 1.78 2.78 0.83 0.56

1626

 1,600 5.22 5.77 6.66 0.56 1.11


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

The amount of Whispering Company’s inventory

$enter the dollar amount of Whispering Company's inventory

Solutions

Expert Solution

Item No. Quantity Cost per Unit Cost to Replace Estimated
Selling Price
(A)		 Cost of Completion
and Disposal
(B)		 NRV
(A (-) B)
1320 1,800 3.55 3.33 5 0.39 4.61
1333 1,500 3 2.55 3.89 0.56 3.33
1426 1,400 5 4.11 5.55 0.44 5.11
1437 1,60 4 3.44 3.55 0.28 3.27
1510 1,300 2.5 2.22 3.61 0.89 2.72
1522 1,100 3.33 3 4.22 0.44 3.78
1573 3,600 2 1.78 2.78 0.83 1.95
1626 1,600 5.22 5.77 6.66 0.56 6.1
NRV
C = (A (-) B)		 Normal Profit NRV
(-)
Normal profit
(D)		 Cost to Replace
(E)		 Market
Value
(Mid of C , D and E )		 Lower of
Cost or market Value
(F)		 Quantity
(G)		 Inventory value
(F x G)
4.61 1.39 3.22 3.33 3.33 3.33 1,800 5994
3.33 0.56 2.77 2.55 2.77 2.77 1,500 4155
5.11 1.11 4 4.11 4.11 4.11 1,400 5754
3.27 1 2.27 3.44 3.27 3.27 1,600 5232
2.72 0.67 2.05 2.22 2.22 2.22 1,300 2886
3.78 0.56 3.22 3 3.22 3.22 1,100 3542
1.95 0.56 1.39 1.78 1.78 1.78 3,600 6408
6.1 1.11 4.99 5.77 5.77 5.22 1,600 8352
The amount of Whispering Company’s inventory = $ 42,323

ekkarill92 answered 2 years ago
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