Question

In: Accounting

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 1.70 2.65 0.80 0.53

1626

 1,300 4.98 5.51 6.36 0.53 1.06


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

Solutions

Expert Solution

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 3.39 3.18 4.77 0.37 1.33 4.4 3.07 3.18 3.18 4770
1333 1200 2.86 2.44 3.71 0.53 0.53 3.18 2.65 2.65 2.65 3180
1426 1100 4.77 3.92 5.3 0.42 1.06 4.88 3.82 3.92 3.92 4312
1437 1300 3.82 3.29 3.39 0.27 0.95 3.12 2.17 3.12 3.12 4056
1510 1000 2.39 2.12 3.45 0.85 0.64 2.6 1.96 2.12 2.12 2120
1522 800 3.18 2.86 4.03 0.42 0.53 3.61 3.08 3.08 3.08 2464
1573 3300 1.91 1.7 2.65 0.8 0.53 1.85 1.32 1.7 1.7 5610
1626 1300 4.98 5.51 6.36 0.53 1.06 5.83 4.77 5.51 4.98 6474
Total ending inventory value 32986
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)

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

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...
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...
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