Alan Company follows the practice of pricing its inventory at LCNRV, on an indiv
ID: 2607482 • Letter: A
Question
Alan 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
1,200
$3.20
$4.50
$1.60
1333
900
2.70
3.40
1.00
1426
800
4.50
5.00
1.40
1437
1,000
3.60
3.20
1.35
1510
700
2.25
3.25
1.40
1522
500
3.00
3.90
0.80
1573
3,000
1.80
2.50
1.20
1626
1,000
4.70
6.00
1.50
Instructions
From the information above, determine the amount of Sedato Company inventory.
Item No.
Quantity
Cost per Unit
Estimated Selling Price
Cost to Complete and Sell
1320
1,200
$3.20
$4.50
$1.60
1333
900
2.70
3.40
1.00
1426
800
4.50
5.00
1.40
1437
1,000
3.60
3.20
1.35
1510
700
2.25
3.25
1.40
1522
500
3.00
3.90
0.80
1573
3,000
1.80
2.50
1.20
1626
1,000
4.70
6.00
1.50
Explanation / Answer
determine the amount of Sedato Company inventory.
Amount of sedato company inventory is $21565
Item No. Quantity Cost per unit Net selling price value under LCNRV inventory cost 1320 1200 3.20 2.90 2.90 3480 1333 900 2.70 2.40 2.40 2160 1426 800 4.50 3.60 3.60 2880 1437 1000 3.60 1.85 1.85 1850 1510 700 2.25 1.85 1.85 1295 1522 500 3.00 3.10 3.00 1500 1573 3000 1.80 1.30 1.30 3900 1626 1000 4.70 4.50 4.50 4500 Total 21565Related Questions
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