Indigo Company follows the practice of pricing its inventory at the lower-of-cos
ID: 2558801 • Letter: I
Question
Indigo Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis Estimated Selling Price Cost of Completion and Disposal Cost per No. Quantity Unit $3.97 3.35 5.58 4.46 2.79 3.72 2.23 5.83 Cost to Replace $3.72 2.85 4.59 3.84 2.48 3.35 1.98 6.45 Normal Profit $1.55 0.62 1.24 1.12 0.74 0.62 0.62 1.24 Item 13201,600 13331,300 14261,200 14371,400 15101,100 1522 15733,400 16261,400 $5.58 4.34 6.20 3.97 4.03 4.71 3.10 7.44 $0.43 0.62 0.50 0.31 0.99 0.50 0.93 0.62 900 From the information above, determine the amount of Indigo Company inventory. The amount of Indigo Company's inventory 42046Explanation / Answer
Item Quantity Cost per unit Cost to replace Estimated selling price Cost of completion and disposal Normal profit NRV NRV less profit Market Lower of cost or market Inventory value 1320 1600 3.97 3.72 5.58 0.43 1.55 5.15 3.6 3.72 3.72 5952 1333 1300 3.35 2.85 4.34 0.62 0.62 3.72 3.1 3.1 3.1 4030 1426 1200 5.58 4.59 6.2 0.5 1.24 5.7 4.46 4.59 4.59 5508 1437 1400 4.46 3.84 3.97 0.31 1.12 3.66 2.54 3.66 3.66 5124 1510 1100 2.79 2.48 4.03 0.99 0.74 3.04 2.3 2.48 2.48 2728 1522 900 3.72 3.35 4.71 0.5 0.62 4.21 3.59 3.59 3.59 3231 1573 3400 2.23 1.98 3.1 0.93 0.62 2.17 1.55 1.98 1.98 6732 1626 1400 5.83 6.45 7.44 0.6 1.24 6.84 5.6 6.45 5.83 8162 Total 41467 The amount of Indigo company's inventory=$41467