Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sel

Question

Item No. Quantity Cost
per Unit Estimated
Selling Price Cost to Complete
and Sell Splish Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.
Item No. Quantity Cost
per Unit Estimated
Selling Price Cost to Complete
and Sell 1320 1,900 $3.42 $4.82 $1.71 1333 1,600 2.89 3.64 1.07 1426 1,500 4.82 5.35 1.50 1437 1,700 3.85 3.42 1.44 1510 1,400 2.41 3.48 1.50 1522 1,200 3.21 4.17 0.86 1573 3,700 1.93 2.68 1.28 1626 1,700 5.03 6.42 1.61
From the information above, determine the amount of Splish Company inventory.
The amount of Splish Company’s inventory $

Explanation / Answer

Note : NRV of individual items in the inventory = Estimated Selling price - Cost to Complete Sell

Calculation of Splish Company inventory value

Answer : The amount of Splish Company’s inventory = $39,143

Item No Quantity Cost per unit ($) NRV ($) Lower of cost or NRV ($) Total Value ($) 1320 1,900 3.42 4.82 - 1.71 =3.11 3.11 5,909 1333 1,600 2.89 3.64 - 1.07 = 2.57 2.57 4,112 1426 1,500 4.82 5.35 - 1.50 = 3.85 3.85 5,775 1437 1,700 3.85 3.42 - 1.44 = 1.98 1.98 3,366 1510 1,400 2.41 3.48 - 1.50 =1.98 1.98 2,772 1522 1,200 3.21 4.17 - 0.86 = 3.31 3.21 3,852 1573 3,700 1.93 2.68 - 1.28 = 1.40 1.40 5,180 1626 1,700 5.03 6.42 - 1.61 = 4.81 4.81 8,177 Total Inventory Value 39,143

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

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