1. The following information for five products (A-E) was taken from the inventor

Question

1. The following information for five products (A-E) was taken from the inventory records of the Walker Company: Product # of Units Unit cost Replacement cost per unit Net realizable value (NRV) per unit NRV-Normal profit per unit 175 200250 200 300 $5.50 $10.00 $5.10 $5.10 $5.00 $6.00 $9.00 $4.60$4.50$4.50 $5.20 $12.50 $7.00 $7.00 $7.00 $4.80 $10.30 $5.25 $4.00 $480 Required: Determine the valuation of the inventory at the lower of cost or market applied t a. individual items the inventory as a whole b.

Explanation / Answer

A Individual items (5.2*175)+(10*200)+(5.1*250)+(4.5*200)+4.8*300) = 6525 B At cost 962.50 + $2,000 + $1,275 + $1,020 + $1,500 = 6757.5 At Market price $910 + $2,060 + $1,312.50 + $900 + $1,440 = 6622.5

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