Question
In: Accounting
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 |
0.50 |
| 1573 |
3,000 |
1.80 |
1.60 |
2.50 |
0.75 |
0.50 |
| 1626 |
1,000 |
4.70 |
5.20 |
6.00 |
0.50 |
1.00 |
Instructions
From the information above, determine the amount of Wangerin Company inventory.
Solutions
Expert Solution
| Item | Quantity | Cost per | Cost to | Estimated | Cost of Completion | NRV* | Normal | NRV-Normal Profit | Market | Lower-of-Cost- | Inventory |
| No. | Unit | Replace | Selling Price | and Disposal | (Ceiling) | Profit | (Floor) | Value | or-Market | Valuation | |
| 1320 | 1200 | 3.20 | 3.00 | 4.50 | 0.35 | 4.15 | 1.25 | 2.90 | 3.00 | 3.00 | 3600 |
| 1333 | 900 | 2.70 | 2.30 | 3.50 | 0.50 | 3.00 | 0.50 | 2.50 | 2.50 | 2.50 | 2250 |
| 1426 | 800 | 4.50 | 3.70 | 5.00 | 0.40 | 4.60 | 1.00 | 3.60 | 3.70 | 3.70 | 2960 |
| 1437 | 1000 | 3.60 | 3.10 | 3.20 | 0.25 | 2.95 | 0.90 | 2.05 | 2.95 | 2.95 | 2950 |
| 1510 | 700 | 2.25 | 2.00 | 3.25 | 0.80 | 2.45 | 0.60 | 1.85 | 2.00 | 2.25 | 1575 |
| 1522 | 500 | 3.00 | 2.70 | 3.80 | 0.40 | 3.40 | 0.50 | 2.90 | 2.90 | 2.90 | 1450 |
| 1573 | 3000 | 1.80 | 1.60 | 2.50 | 0.75 | 1.75 | 0.50 | 1.25 | 1.60 | 1.60 | 4800 |
| 1626 | 1000 | 4.70 | 5.20 | 6.00 | 0.50 | 5.50 | 1.00 | 4.50 | 5.20 | 4.70 | 4700 |
| Total inventory $ | 24285 |
*Net realizable value (NRV) = Estimated selling price - Cost of completion and disposal
Wangerin Company inventory: $24,285
ekkarill92 answered 9 months agoRelated Solutions
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...
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...
Kingbird Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Kingbird 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
$3.87
$3.63
$5.45
$0.42
$1.51
1333
1,200
3.27
2.78
4.24
0.61
0.61
1426
1,100
5.45
4.48
6.05
0.48
1.21
1437
1,300
4.36
3.75
3.87
0.30
1.09
1510
1,000
2.72
2.42
3.93
0.97
0.73
1522
800
3.63
3.27
4.60
0.48
0.61
1573
3,300
2.18...
Vaughn Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Vaughn 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...
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