Question
In: Accounting
Concord Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Concord 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 | $3.36 | $3.15 | $4.73 | $0.37 | $1.31 | ||||||||||||
|
1333 |
1,200 | 2.84 | 2.42 | 3.68 | 0.53 | 0.53 | ||||||||||||
|
1426 |
1,100 | 4.73 | 3.89 | 5.25 | 0.42 | 1.05 | ||||||||||||
|
1437 |
1,300 | 3.78 | 3.26 | 3.36 | 0.26 | 0.95 | ||||||||||||
|
1510 |
1,000 | 2.36 | 2.10 | 3.41 | 0.84 | 0.63 | ||||||||||||
|
1522 |
800 | 3.15 | 2.84 | 3.99 | 0.42 | 0.53 | ||||||||||||
|
1573 |
3,300 | 1.89 | 1.68 | 2.63 | 0.79 | 0.53 | ||||||||||||
|
1626 |
1,300 | 4.94 | 5.46 | 6.30 | 0.53 | 1.05 | ||||||||||||
From the information above, determine the amount of Concord Company
inventory.
| The amount of Concord Company’s inventory |
$enter the dollar amount of Concord Company's inventory |
Solutions
Expert Solution
Solution
| The amount of Concord Company’s inventory | $ 32,676.00 |
Working
| Product | Cost | Replacement cost | NRV | NRV-NP | Market | Per unit Inventory Value | Units | Lower of cost or realizable value |
| 1320 | $ 3.36 | $ 3.15 | $ 4.36 | $ 3.05 | $ 3.15 | $ 3.15 | 1,500 | $ 4,725.00 |
| 1333 | $ 2.84 | $ 2.42 | $ 3.15 | $ 2.62 | $ 2.62 | $ 2.62 | 1,200 | $ 3,144.00 |
| 1426 | $ 4.73 | $ 3.89 | $ 4.83 | $ 3.78 | $ 3.89 | $ 3.89 | 1,100 | $ 4,279.00 |
| 1437 | $ 3.78 | $ 3.26 | $ 3.10 | $ 2.15 | $ 3.10 | $ 3.10 | 1,300 | $ 4,030.00 |
| 1510 | $ 2.36 | $ 2.10 | $ 2.57 | $ 1.94 | $ 2.10 | $ 2.10 | 1,000 | $ 2,100.00 |
| 1522 | $ 3.15 | $ 2.84 | $ 3.57 | $ 3.04 | $ 3.04 | $ 3.04 | 800 | $ 2,432.00 |
| 1573 | $ 1.89 | $ 1.68 | $ 1.84 | $ 1.31 | $ 1.68 | $ 1.68 | 3,300 | $ 5,544.00 |
| 1626 | $ 4.94 | $ 5.46 | $ 5.77 | $ 4.72 | $ 5.46 | $ 4.94 | 1,300 | $ 6,422.00 |
| $ 32,676.00 |
.
.
| Product | Estimated selling price (A) | Cost to complete and sell (B) | NRV (A-B) |
| 1320 | $ 4.73 | $ 0.37 | $ 4.36 |
| 1333 | $ 3.68 | $ 0.53 | $ 3.15 |
| 1426 | $ 5.25 | $ 0.42 | $ 4.83 |
| 1437 | $ 3.36 | $ 0.26 | $ 3.10 |
| 1510 | $ 3.41 | $ 0.84 | $ 2.57 |
| 1522 | $ 3.99 | $ 0.42 | $ 3.57 |
| 1573 | $ 2.63 | $ 0.79 | $ 1.84 |
| 1626 | $ 6.30 | $ 0.53 | $ 5.77 |
.
.
| If we want to value inventory on the basis of lower of cost or market value then we have to first calculate market value. |
| To calculate market value an easy method is used in this question. We will take the middle value of the given below values to ascertain market value. |
.
| Replacement value | NRV | NRV minus Normal Profits |
ekkarill92 answered 1 year agoRelated 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
1,300
$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...
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...
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