In: Accounting
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.
Inventory item | Cost or market | NRV - profit margin | Replacement cost | Net realizable value | Market | Cost | Lower of cost or market | Number of units | Carrying value | Total cost |
1320 | Market | 5.43 | 5.61 | 7.77 | 5.61 | 5.98 | 5.61 | 1,700 | 9,537 | 10,166 |
1333 | Market | 4.67 | 4.3 | 5.61 | 4.67 | 5.05 | 4.67 | 1,400 | 6,538 | 7,070 |
1426 | Market | 6.73 | 6.92 | 8.6 | 6.92 | 8.42 | 6.92 | 1,300 | 8,996 | 10,946 |
Total | Inventory | 25,071 | 28,182 |
Amount of inventory is 25071