Question
In: Accounting
Larkspur Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item...
Larkspur Company follows the practice of pricing its inventory
at LCNRV, on an individual-item basis.
|
Item No. |
Quantity |
Cost |
Estimated |
Cost to Complete |
||||
| 1320 | 1,300 | $4.00 | $5.63 | $2.00 | ||||
| 1333 | 1,000 | 3.38 | 4.25 | 1.25 | ||||
| 1426 | 900 | 5.63 | 6.25 | 1.75 | ||||
| 1437 | 1,100 | 4.50 | 4.00 | 1.69 | ||||
| 1510 | 800 | 2.81 | 4.06 | 1.75 | ||||
| 1522 | 600 | 3.75 | 4.88 | 1.00 | ||||
| 1573 | 3,100 | 2.25 | 3.13 | 1.50 | ||||
| 1626 | 1,100 | 5.88 | 7.50 | 1.88 |
From the information above, determine the amount of Larkspur
Company inventory.
| The amount of Larkspur Company’s inventory |
Solutions
Expert Solution
The amount of Larkspur Company’s inventory= $29,643
Working
| Item | Quantity | Cost per unit | Estimated selling price (A) | Cost to complete and sell (B) | Realizable value (A-B) | Total cost | Total realizable value | Lower of cost or realizable value |
| 1320 | 1,300 | $ 4.00 | $ 5.63 | $ 2.00 | $ 3.63 | 5,200.00 | 4,719.00 | 4,719.00 |
| 1333 | 1,000 | $ 3.38 | $ 4.25 | $ 1.25 | $ 3.00 | 3,380.00 | 3,000.00 | 3,000.00 |
| 1426 | 900 | $ 5.63 | $ 6.25 | $ 1.75 | $ 4.50 | 5,067.00 | 4,050.00 | 4,050.00 |
| 1437 | 1,100 | $ 4.50 | $ 4.00 | $ 1.69 | $ 2.31 | 4,950.00 | 2,541.00 | 2,541.00 |
| 1510 | 800 | $ 2.81 | $ 4.06 | $ 1.75 | $ 2.31 | 2,248.00 | 1,848.00 | 1,848.00 |
| 1522 | 600 | $ 3.75 | $ 4.88 | $ 1.00 | $ 3.88 | 2,250.00 | 2,328.00 | 2,250.00 |
| 1573 | 3,100 | $ 2.25 | $ 3.13 | $ 1.50 | $ 1.63 | 6,975.00 | 5,053.00 | 5,053.00 |
| 1626 | 1,100 | $ 5.88 | $ 7.50 | $ 1.88 | $ 5.62 | 6,468.00 | 6,182.00 | 6,182.00 |
| 29,643.00 |
ekkarill92 answered 1 year agoRelated Solutions
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Item No.
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Estimated
Selling Price
Cost to Complete
and Sell
1320
1,800
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1333
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Exercise 9-03
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Item No.
Quantity
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3.39
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3.45
1.48
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3.18
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Exercise 9-03 Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item...
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inventory at LCNRV, on an individual-item basis. Item No. Quantity
Cost per Unit Estimated Selling Price Cost to Complete and Sell
1320 1,800 $3.90 $5.49 $1.95 1333 1,500 3.29 4.15 1.22 1426 1,400
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1522 1,100 3.66 4.76 0.98 1573 3,600 2.20 3.05 1.46 1626 1,600 5.73
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Sheridan Company uses the LCNRV method, on an individual-item
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31, 2020, consists of products D, E, F, G, H, and I. Relevant per
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Item D
Item E
Item F
Item G
Item H
Item I
Estimated selling price
$130
$119
$103
$97
$119
$97
Cost
81
86
86
86
54
39
Cost to complete
32
32
27
38
32
32
Selling costs
11...
Ayayai Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The...
Ayayai Company uses the LCNRV method, on an individual-item
basis, in pricing its inventory items. The inventory at December
31, 2017, consists of products D, E, F, G, H, and I. Relevant per
unit data for these products appear below. Item D Item E Item F
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31, 2017, consists of products D, E, F, G, H, and I. Relevant per
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Selling costs 11...
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
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1320
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$3.23
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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
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Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
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Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
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1320
1,600
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1510
1,100
2.43
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Martinez Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
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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....
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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
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$3.39
$3.18
$4.77
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