Question
In: Accounting
Exercise 9-7 Ayayai Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an...
Exercise 9-7 Ayayai 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 | 1.65 | 2.58 | 0.77 | 0.52 |
| 1626 | 1,200 | 4.84 | 5.36 | 6.18 | 0.52 | 1.03 |
From the information above, determine the amount of Ayayai Company inventory.
Solutions
Expert Solution
| 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 | 1,400 | 3.30 | 3.09 | 4.64 | 0.36 | 1.29 | 4.28 | 2.99 | 3.09 | 3.09 | 4326 |
| 1333 | 1,100 | 2.78 | 2.37 | 3.61 | 0.52 | 0.52 | 3.09 | 2.57 | 2.57 | 2.57 | 2827 |
| 1426 | 1000 | 4.64 | 3.81 | 5.15 | 0.41 | 1.03 | 4.74 | 3.71 | 3.81 | 3.81 | 3810 |
| 1437 | 1,200 | 3.71 | 3.19 | 3.30 | 0.26 | 0.93 | 3.04 | 2.11 | 3.04 | 3.04 | 3648 |
| 1510 | 900 | 2.32 | 2.06 | 3.35 | 0.82 | 0.62 | 2.53 | 1.91 | 2.06 | 2.06 | 1854 |
| 1522 | 700 | 3.09 | 2.78 | 3.91 | 0.41 | 0.52 | 3.50 | 2.98 | 2.98 | 2.98 | 2086 |
| 1573 | 3,200 | 1.85 | 1.65 | 2.58 | 0.77 | 0.52 | 1.81 | 1.29 | 1.65 | 1.65 | 5280 |
| 1626 | 1,200 | 4.84 | 5.36 | 6.18 | 0.52 | 1.03 | 5.66 | 4.63 | 5.36 | 4.84 | 5808 |
| Total | 29639 | ||||||||||
| The amount of Ayayai Company’s inventory = $29639 | |||||||||||
ekkarill92 answered 1 year agoRelated Solutions
Exercise 9-7 Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an...
Exercise 9-7
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
1,500
$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
5.3
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...
Exercise 9-07 Windsor Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an...
Exercise 9-07
Windsor 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...
E9.7 (LO 2) (Lower-of-Cost-or-Market) Wangerin Company follows the practice of pricing its inventory at the lower‐of‐cost‐or‐market,...
E9.7 (LO 2)
(Lower-of-Cost-or-Market) Wangerin 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
1,200
$3.20
$3.00
$4.50
$0.35
$1.25
1333
900
2.70
2.30
3.50
0.50
0.50
1426
800
4.50
3.70
5.00
0.40
1.00
1437
1,000
3.60
3.10
3.20
0.25
0.90
1510
700
2.25
2.00
3.25
0.80
0.60
1522
500
3.00
2.70
3.80
0.40...
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...
Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item...
Michael Bolton 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
1700
5.98
5.61
8.42
0.65
2.34
1333
1400
5.05
4.30
6.55
0.94
0.94
1426
1300
8.42
6.92
9.35
0.75
1.87
From the information above, determine the amount of Bolton
Company inventory.
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Think of a team that you are on or have been on recently. How does it...
- Objective: Set up a desktop for someone who is visually impaired. How and why would you...
- As an investor, what would you look for in an annual report? Why are the notes...
- As the temperature of a metal rod varies, so does the resistance and the dimensions of...
- Amanda, who is in the 32% marginal tax bracket, must decide between two investment opportunities, both...
- A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its...
- TJ Enterprises’ equipment account increased $43,000 during the period; the related accumulated depreciation increased $14,000. New...
ADVERTISEMENT