Exercise 9-3 Michael Bolton Company follows the practice of pricing its inventor

Question

Exercise 9-3

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

From the information above, determine the amount of Bolton Company inventory.

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

Explanation / Answer

Quantity (a)

Inventory Statement Item Number

Quantity (a)

Cost per unit Cost to replace( Market Value ) Lower of Cost or Market (b) Amount of Inventory (a*b) 1320 1200 $3.2 $3.00 $3.00 3,600 1333 900 2.70 2.30 2.30 2,070 1426 800 4.50 3.70 3.70 2,960 1437 1,000 3.60 3.10 3.10 3,100 1510 700 2.25 2.00 2.00 1,400 1522 500 3.00 2.70 2.70 1,350 1573 3,000 1.80 1.60 1.60 4,800 1626 1,000 4.70 5.20 4.70 4,700 Total 23.10 23,980

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