Data on the A detailed listing of merchandise on hand.physical inventory of Katu
ID: 2544423 • Letter: D
Question
Data on the A detailed listing of merchandise on hand.physical inventory of Katus Products Co. as of December 31 follows:
Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:
Required:
Determine the inventory at cost as well as at the lower of cost or market, using the The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item:
1- Insert the quantity and unit cost of the last purchase.
2- On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3- Total the cost and market columns and insert the lower of the two totals in the LCM column.
The first item on the inventory sheet has been completed as an example.
InventoryItem Inventory
Quantity Market Value per Unit
(Net Realizable Value) A54 37 $ 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744
Explanation / Answer
Inventory Sheet December 31 Inventory Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Total Cost ($) Total Market ($) Total LCM ($) A54 37 30 60 56 1800 1680 7 58 56 406 392 2206 2072 2072 C77 24 24 174 178 4176 4272 4176 F66 30 20 130 132 2600 2640 10 128 132 1280 1320 3880 3960 3880 H83 21 6 547 545 3282 3270 15 540 545 8100 8175 11382 11445 11382 K12 375 375 6 5 2250 1875 1875 Q58 90 75 25 18 1875 1350 15 26 18 390 270 2265 1620 1620 S36 8 5 256 235 1280 1175 4 260 235 1040 940 2320 2115 2115 V97 140 100 17 20 1700 2000 40 16 20 640 800 2340 2800 2340 Y88 17 10 750 744 7500 7440 7 740 744 5180 5208 12680 12648 12648
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