In: Accounting
Stellar 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 Stellar Company
inventory.
The amount of Stellar Company’s inventory |
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 | $4,326 |
1333 | 1,100 | 2.78 | 2.37 | 3.61 | 0.52 | 0.52 | $3.09 | $2.57 | $2.57 | $2.57 | $2,827 |
1426 | 1000 | 4.64 | 3.81 | 5.15 | 0.41 | 1.03 | $4.74 | $3.71 | $3.81 | $3.81 | $3,810 |
1437 | 1,200 | 3.71 | 3.19 | 3.30 | 0.26 | 0.93 | $3.04 | $2.11 | $3.04 | $3.04 | $3,648 |
1510 | 900 | 2.32 | 2.06 | 3.35 | 0.82 | 0.62 | $2.53 | $1.91 | $2.06 | $2.06 | $1,854 |
1522 | 700 | 3.09 | 2.78 | 3.91 | 0.41 | 0.52 | $3.50 | $2.98 | $2.98 | $2.98 | $2,086 |
1573 | 3,200 | 1.85 | 1.65 | 2.58 | 0.77 | 0.52 | $1.81 | $1.29 | $1.65 | $1.65 | $5,280 |
1626 | 1,200 | 4.84 | 5.36 | 6.18 | 0.52 | 1.03 | $5.66 | $4.63 | $5.36 | $4.84 | $5,808 |
Total | $29,639 | ||||||||||
The amount of Stellar Company’s inventory = $29639 |