Larkspur Company follows the practice of pricing its inventory at the lower-of-c
ID: 2519246 • Letter: L
Question
Larkspur 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 1,600 $3.97 $3.72 $5.58 $0.43 $1.55 1333 1,300 3.35 2.85 4.34 0.62 0.62 1426 1,200 5.58 4.59 6.20 0.50 1.24 1437 1,400 4.46 3.84 3.97 0.31 1.12 1510 1,100 2.79 2.48 4.03 0.99 0.74 1522 900 3.72 3.35 4.71 0.50 0.62 1573 3,400 2.23 1.98 3.10 0.93 0.62 1626 1,400 5.83 6.45 7.44 0.62 1.24 From the information above, determine the amount of Larkspur Company inventory. The amount of Larkspur Company’s inventory
Explanation / Answer
Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit NRV NRV less normal profit Market Lower of cost or market Inventory value 1320 1,600 $3.97 $3.72 $5.58 $0.43 $1.55 $5.15 $3.60 $3.72 $3.72 $5,952 1333 1,300 3.35 2.85 4.34 0.62 0.62 $3.72 $3.10 $3.10 $3.10 $4,030 1426 1200 5.58 4.59 6.2 0.5 1.24 $5.70 $4.46 $4.59 $4.59 $5,508 1437 1,400 4.46 3.84 3.97 0.31 1.12 $3.66 $2.54 $3.66 $3.66 $5,124 1510 1100 2.79 2.48 4.03 0.99 0.74 $3.04 $2.30 $2.48 $2.48 $2,728 1522 900 3.72 3.35 4.71 0.5 0.62 $4.21 $3.59 $3.59 $3.59 $3,231 1573 3,400 2.23 1.98 3.1 0.93 0.62 $2.17 $1.55 $1.98 $1.98 $6,732 1626 1,400 5.83 6.45 7.44 0.62 1.24 $6.82 $5.58 $6.45 $5.83 $8,162 Total $41,467 The amount of Larkspur Company’s inventory $41467
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