The inventory of Oheto Company on December 31, 2013, consists of the following i

Question

The inventory of Oheto Company on December 31, 2013, consists of the following items.

a Part No. 121 is obsolete and has a realizable value of $0.6 each as scrap.

(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.

(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Part No.
Quantity
Cost per Unit
Cost to Replace per Unit 110

640
$123
$129 111

1,110
77
67 112

540
103
98 113

260
219
232 120

400
264
268 121 a
1,680
21
18 122

350
310
303 The inventory of Oheto Company on December 31, 2013, consists of the following items. Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item. Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Explanation / Answer

A. 475,608

B. 484,428

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