Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item

Question

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

Help In Homework · Accepted Answer

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

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Sarasota Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis

Expert Solution

Archived Solution

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

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