Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sel
ID: 2561297 • Letter: I
Question
Item No. Quantity Costper Unit Estimated
Selling Price Cost to Complete
and Sell Splish Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.
Item No. Quantity Cost
per Unit Estimated
Selling Price Cost to Complete
and Sell 1320 1,900 $3.42 $4.82 $1.71 1333 1,600 2.89 3.64 1.07 1426 1,500 4.82 5.35 1.50 1437 1,700 3.85 3.42 1.44 1510 1,400 2.41 3.48 1.50 1522 1,200 3.21 4.17 0.86 1573 3,700 1.93 2.68 1.28 1626 1,700 5.03 6.42 1.61
From the information above, determine the amount of Splish Company inventory.
The amount of Splish Company’s inventory $
Explanation / Answer
Note : NRV of individual items in the inventory = Estimated Selling price - Cost to Complete Sell
Calculation of Splish Company inventory value
Answer : The amount of Splish Company’s inventory = $39,143
Item No Quantity Cost per unit ($) NRV ($) Lower of cost or NRV ($) Total Value ($) 1320 1,900 3.42 4.82 - 1.71 =3.11 3.11 5,909 1333 1,600 2.89 3.64 - 1.07 = 2.57 2.57 4,112 1426 1,500 4.82 5.35 - 1.50 = 3.85 3.85 5,775 1437 1,700 3.85 3.42 - 1.44 = 1.98 1.98 3,366 1510 1,400 2.41 3.48 - 1.50 =1.98 1.98 2,772 1522 1,200 3.21 4.17 - 0.86 = 3.31 3.21 3,852 1573 3,700 1.93 2.68 - 1.28 = 1.40 1.40 5,180 1626 1,700 5.03 6.42 - 1.61 = 4.81 4.81 8,177 Total Inventory Value 39,143Related Questions
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