9-7 Sandhill Company follows the practice of pricing its inventory at the lower-
ID: 2554782 • Letter: 9
Question
9-7
Sandhill Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.
1320
From the information above, determine the amount of Sandhill Company inventory, The amount of Sandhill Company's inventory $_________
Item No Quantity Cost Per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit1320
1900 $3.65 $3.42 $5.13 $0.40 $1.43 1333 1600 3.08 2.62 3.99 0.57 0.57 1426 1500 5.13 4.22 5.70 0.46 1.14 1437 1700 4.10 3.53 3.65 0.29 1.03 1510 1400 2.57 2.28 3.71 0.91 0.68 1522 1200 3.42 3.08 4.33 0.46 0.57 1573 3700 2.05 1.82 2.85 0.86 0.57 1626 1700 5.36 5.93 6.84 0.57 1.14Explanation / Answer
Item No Quantity Cost Per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit NRV NRV less profit Market Lower of cost or market Inventory value 1320 1900 $3.65 $3.42 $5.13 $0.40 $1.43 $4.73 $3.30 $3.42 $3.42 $6,498 1333 1600 3.08 2.62 3.99 0.57 0.57 $3.42 $2.85 $2.85 $2.85 $4,560 1426 1500 5.13 4.22 5.7 0.46 1.14 $5.24 $4.10 $4.22 $4.22 $6,330 1437 1700 4.1 3.53 3.65 0.29 1.03 $3.36 $2.33 $3.36 $3.36 $5,712 1510 1400 2.57 2.28 3.71 0.91 0.68 $2.80 $2.12 $2.28 $2.28 $3,192 1522 1200 3.42 3.08 4.33 0.46 0.57 $3.87 $3.30 $3.30 $3.30 $3,960 1573 3700 2.05 1.82 2.85 0.86 0.57 $1.99 $1.42 $1.82 $1.82 $6,734 1626 1700 5.36 5.93 6.84 0.57 1.14 $6.27 $5.13 $5.93 $5.36 $9,112 Total $46,098 Sandhill Company's inventory $46098
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