Michael Bolton Company follows the practice of pricing its inventory at the lowe
ID: 2469064 • 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 1,800 $4.64 $4.35 $6.53 $0.51 $1.81 1333 1,500 3.92 3.34 5.08 0.73 0.73 1426 1,400 6.53 5.37 7.25 0.58 1.45 1437 1,600 5.22 4.50 4.64 0.36 1.31 1510 1,300 3.26 2.90 4.71 1.16 0.87 1522 1,100 4.35 3.92 5.51 0.58 0.73 1573 3,600 2.61 2.32 3.63 1.09 0.73 1626 1,600 6.82 7.54 8.70 0.73 1.45Explanation / Answer
Ans: Calculation of Company Inventory Item No. Cost Per Unit(A) Replacement Cost(B) Cost of completion and disposal(C) Cost(B+C) Lower of Cost or Market(A or B+C Quantity Final Inventory Value 1320 4.64 4.35 0.35 4.7 4.64 1800 8352 1333 3.92 3.34 0.5 3.84 3.84 1500 5760 1426 6.53 5.37 0.4 5.77 5.77 1400 8078 1437 5.22 4.5 0.25 4.75 4.75 1600 7600 1510 3.26 2.9 0.8 3.7 3.26 1300 4238 1522 4.35 3.92 0.4 4.32 4.32 1100 4752 1573 2.61 2.32 0.75 3.07 2.61 3600 9396 1626 6.82 7.54 0.5 8.04 6.82 1600 10912