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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1320
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Exercise 9-03
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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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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
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$103
$97
$119
$97
Cost
81
86
86
86
54
39
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32
32
27
38
32
32
Selling costs
11...
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unit data for these products appear below. Item D Item E Item F
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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
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1,000
2.73
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4.55
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1.01
1437
1,100
3.64
3.13
3.23
0.25
0.91
1510
800
2.27
2.02
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1522
600
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Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
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1320
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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...
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the lower-of-cost-or-market, on an individual-item basis.
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Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
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