Crane Company follows the practice of pricing its inventory at the lower-of-cost

Question

Crane 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 $3.26 2.75 4.59 3.67 2.30 3.06 1.84 4.79 Cost to Replace $3.06 2.35 3.77 3.16 2.04 2.75 1.63 5.30 Item Normal 1320 1,300 1333 1,000 1426 1437 1,100 1510 1522 1573 3,100 1626 1,100 $4.59 3.57 5.10 3.26 3.32 3.88 2.55 6.12 $0.36 0.51 0.41 0.26 0.82 0.41 0.77 0.51 Profit $1.28 0.51 1.02 0.92 0.61 0.51 0.51 1.02 900 800 600 From the information above, determine the amount of Crane Company inventory The amount of Crane Cormpany's inventory

Explanation / Answer

Item no. Cost per unit Cost to replace NRV NRV less profit Market Lower of cost or market Quantity Inventory value 1320 3.26 3.06 4.23 2.95 3.06 3.06 1300 3978 1333 2.75 2.35 3.06 2.55 2.55 2.55 1000 2550 1426 4.59 3.77 4.69 3.67 3.77 3.77 900 3393 1437 3.67 3.16 3 2.08 3 3 1100 3300 1510 2.3 2.04 2.5 1.89 2.04 2.04 800 1632 1522 3.06 2.75 3.47 2.96 2.96 2.96 600 1776 1573 1.84 1.63 1.78 1.27 1.63 1.63 3100 5053 1626 4.79 5.3 5.61 4.59 5.3 4.79 1100 5269 Total 26951 The amount of Crane company's inventory = $26951

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