In: Accounting
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 |
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 |