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Homework answers / question archive / Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis
Sarasota 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 Profitt |
|---|---|---|---|---|---|---|
| 1320 | 1,500 | $3.39 | $3.18 | $4.77 | $0.37 | $1.33 |
| 1333 | 1,200 | 2.86 | 2.44 | 3.71 | 0.53 | 0.53 |
| 1426 | 1,100 | 4.77 | 3.92 | 5.3 | 0.42 | 1.06 |
| 1437 | 1,300 | 3.82 | 3.29 | 3.39 | 0.27 | 0.95 |
| 1510 | 1,000 | 2.39 | 2.12 | 3.45 | 0.85 | 0.64 |
| 1522 | 800 | 3.18 | 2.86 | 4.03 | 0.42 | 0.53 |
| 1573 | 3,300 | 1.91 | 1.7 | 2.65 | 0.8 | 0.53 |
| 1626 | 1,300 | 4.98 | 5.51 | 6.36 | 0.53 | 1.06 |
From the information above, determine the amount of Sarasota Company inventory.
The amount of Sarasota Company's inventory
| Calculation of total cost | ||||||||
|---|---|---|---|---|---|---|---|---|
| Item No. | Cost per unit | Cost to Replace | NRV(SP-Cost of compln& disposal(Ceiling) | NRV-Normal Profit(Floor) | NRV/Cost to replace using Ceiling/Floor Rule | Lower Col.2 or Col.6 | Qty. | Total cost |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9=7*8 |
| 1320 | 3.39 | 3.18 | 4.4 | 3.07 | 3.18 | 3.18 | 1500 | 4770 |
| 1333 | 2.86 | 2.44 | 3.18 | 2.65 | 2.65 | 2.65 | 1200 | 3180 |
| 1426 | 4.77 | 3.92 | 4.88 | 3.82 | 3.92 | 3.92 | 1100 | 4312 |
| 1437 | 3.82 | 3.29 | 3.12 | 2.17 | 3.12 | 3.12 | 1300 | 4056 |
| 1510 | 2.39 | 2.12 | 2.6 | 1.96 | 2.12 | 2.12 | 1000 | 2120 |
| 1522 | 3.18 | 2.86 | 3.61 | 3.08 | 3.08 | 3.08 | 800 | 2464 |
| 1573 | 1.91 | 1.7 | 1.85 | 1.32 | 1.7 | 1.7 | 3300 | 5610 |
| 1626 | 4.98 | 5.51 | 5.83 | 4.77 | 5.51 | 4.98 | 1300 | 6474 |
| amount of inventory | 32986 | |||||||
