Marigold Company follows the practice of pricing its inventory at the lower-of-c
ID: 2594095 • Letter: M
Question
Marigold 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 Marigold Company inventory.
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320 1,400 $3.81 $3.57 $5.36 $0.42 $1.49 1333 1,100 3.21 2.74 4.17 0.60 0.60 1426 1,000 5.36 4.40 5.95 0.48 1.19 1437 1,200 4.28 3.69 3.81 0.30 1.07 1510 900 2.68 2.38 3.87 0.95 0.71 1522 700 3.57 3.21 4.52 0.48 0.60 1573 3,200 2.14 1.90 2.98 0.89 0.60 1626 1,200 5.59 6.19 7.14 0.60 1.19Explanation / Answer
Item no. 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 Quantity Inventory value 1320 3.81 3.57 5.36 0.42 1.49 4.94 3.45 3.57 3.57 1400 4998 1333 3.21 2.74 4.17 0.6 0.6 3.57 2.97 2.97 2.97 1100 3267 1426 5.36 4.4 5.95 0.48 1.19 5.47 4.28 4.4 4.4 1000 4400 1437 4.28 3.69 3.81 0.3 1.07 3.51 2.44 3.51 3.51 1200 4212 1510 2.68 2.38 3.87 0.95 0.71 2.92 2.21 2.38 2.38 900 2142 1522 3.57 3.21 4.52 0.48 0.6 4.04 3.44 3.44 3.44 700 2408 1573 2.14 1.9 2.98 0.89 0.6 2.09 1.49 1.9 1.9 3200 6080 1626 5.59 6.19 7.14 0.6 1.19 6.54 5.35 6.19 5.59 1200 6708 Total 34215 The amount of Marigold Company’s inventory: $ 34215
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