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Part No. Quantity Cost per Unit Cost to Replace per Unit he inventory of Oheto C

ID: 2377563 • Letter: P

Question

Part No. Quantity Cost per Unit Cost to Replace per Unit he inventory of Oheto Company on December 31, 2013, consists of the following items.

Part No.
Quantity
Cost per Unit
Cost to Replace per Unit 110

610
$119
$125 111

1,050
75
65 112

570
100
95 113

280
213
225 120

450
256
260 121 a
1,640
20
18 122

370
300
294
a Part No. 121 is obsolete and has a realizable value of $0.6 each as scrap.

(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.

Inventory as of December 31, 2013
$
(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Inventory as of December 31, 2013
$ The inventory of Oheto Company on December 31, 2013, consists of the following items. Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item. Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Explanation / Answer

(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.

Inventory as of December 31, 2013

$


(b)
Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Inventory as of December 31, 2013

$

Inventory as of December 31, 2013

$