Michael Bolton Company follows the practice of pricing its inventory at the lowe
ID: 2447785 • Letter: M
Question
Michael Bolton 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 Bolton Company inventory.
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320 1,700 $5.41 $5.07 $7.61 $0.59 $2.11 1333 1,400 4.56 3.89 5.92 0.85 0.85 1426 1,300 7.61 6.25 8.45 0.68 1.69 1437 1,500 6.08 5.24 5.41 0.42 1.52 1510 1,200 3.80 3.38 5.49 1.35 1.01 1522 1,000 5.07 4.56 6.42 0.68 0.85 1573 3,500 3.04 2.70 4.23 1.27 0.85 1626 1,500 7.94 8.79 10.14 0.85 1.69Explanation / Answer
item no. Quantity Cost per unit Cost to replace Lower cost or market total inventory 1320 1700 5.41 5.07 5.07 8619 1333 1400 4.56 3.89 3.89 5446 1426 1300 7.61 6.25 6.25 8125 1437 1500 6.08 5.24 5.24 7860 1510 1200 3.8 3.38 3.38 4056 1522 1000 5.07 4.56 4.56 4560 1573 3500 3.04 2.7 2.7 9450 1626 1500 7.94 8.79 7.94 11910 Total inventory Cost 60026