Sedato Company follows the practice of pricing its inventory at the lower-of-cos

Question

Sedato 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
1320 1,200

$3.68
$3.45
$5.18

$0.40

$1.44


1333 900

3.11
2.65
3.91

0.58

0.58


1426 800

5.18
4.26
5.75

0.46

1.15


1437 1,000

4.14
3.57
3.68

0.52

1.04


1510 700

2.59
2.30
3.74

0.92

0.69


1522 500

3.45
3.11
4.49

0.46

0.58


1573 3,000

2.07
1.84
2.88

0.86

0.58


1626 1,000

5.41
5.98
6.90

0.58

1.15




From the information above, determine the amount of Sedato Company inventory.

Inventory $

Explanation / Answer

Item Cost MV Valuation Quantity Value basis 1320 3.68 5.18 Cost 1200 4416 1333 3.11 3.91 Cost 900 2799 1426 5.18 5.75 Cost 800 4144 1437 4.14 3.68 MV 1000 3680 1510 2.59 3.74 Cost 700 1813 1522 3.45 4.49 Cost 500 1725 1573 2.07 2.88 Cost 3000 6210 1626 5.41 6.9 Cost 1000 5410 Value of Inventory at lower of Cost or Market Value 30197

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.