Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of
ID: 2552940 • Letter: I
Question
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
Pharoah 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 1.62 2.53 0.76 0.51 1626 1,100 4.75 5.25 6.06 0.51 1.01From the information above, determine the amount of Pharoah Company inventory.
The amount of Pharoah Company’s inventory: ???
Explanation / Answer
Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit NRV NRV less profit Market Lower of cost or market Inventory value 1320 1300 3.23 3.03 4.55 0.35 1.26 4.2 2.94 3.03 3.03 3939 1333 1000 2.73 2.32 3.54 0.51 0.51 3.03 2.52 2.52 2.52 2520 1426 900 4.55 3.74 5.05 0.4 1.01 4.65 3.64 3.74 3.74 3366 1437 1100 3.64 3.13 3.23 0.25 0.91 2.98 2.07 2.98 2.98 3278 1510 800 2.27 2.02 3.28 0.81 0.61 2.47 1.86 2.02 2.02 1616 1522 600 3.03 2.73 3.84 0.4 0.51 3.44 2.93 2.93 2.93 1758 1573 3100 1.82 1.62 2.53 0.76 0.51 1.77 1.26 1.62 1.62 5022 1626 1100 4.75 5.25 6.06 0.51 1.01 5.55 4.54 5.25 4.75 5225 Total 26724 The amount of Pharoah Company’s inventory $26724
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