Michael Bolton Company follows the practice of pricing its inventory at the lowe
ID: 2712247 • 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.
Cost per Estimated Selling Price Cost of Completion and Disposal Item Normal Profit $1.63 0.65 1.30 1.17 0.78 0.65 0.65 1.30 Cost to No. Quantity Unit Replace 13201,800 1333 1426 14371,600 15101,300 15221,100 15733,600 16261,600 $4.16 3.51 5.85 4.68 2.93 3.90 2.34 6.11 $3.90 2.99 4.81 4.03 2.60 3.51 2.08 6.76 $5.85 4.55 6.50 4.16 4.23 4.94 3.25 7.80 $0.46 0.65 0.52 0.33 1.04 0.52 0.98 0.65 1,500 1,400 From the information above, determine the amount of Bolton Company inventory The amount of Bolton Company's inventoryExplanation / Answer
The Amount of Bolton Companys Inventory = $ 49,548
Working
Item No Quantity Cost per unit Cost to replace Estimated Selling Price Cost of Completion and disposal Normal Profit NRV - Ceiling NRV - Floor Market Inventory per unit =Lower of Cost or Market Inventory 1320 1800 4.16 3.90 5.85 0.46 1.63 5.39 3.76 3.90 3.90 7,020 1333 1500 3.51 2.99 4.55 0.65 0.65 3.90 3.25 3.25 3.25 4,875 1426 1400 5.85 4.81 6.50 0.52 1.30 5.98 4.68 4.81 4.81 6,734 1437 1600 4.68 4.03 4.16 0.33 1.17 3.83 2.66 3.83 3.83 6,128 1510 1300 2.93 2.60 4.23 1.04 0.78 3.19 2.41 2.60 2.60 3,380 1522 1100 3.90 3.51 4.94 0.52 0.65 4.42 3.77 3.77 3.77 4,147 1573 3600 2.34 2.08 3.25 0.98 0.65 2.27 1.62 2.08 2.08 7,488 1626 1600 6.11 6.76 7.80 0.65 1.30 7.15 5.85 6.76 6.11 9,776 49,548