CALCULATOR FULL S ES Exercise 9-7 Bridgeport Company follows the practice of pri
ID: 2561920 • Letter: C
Question
CALCULATOR FULL S ES Exercise 9-7 Bridgeport Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-tem basis. Cost per Estimated Cost of Completion Normal and Disposal Profit Item Cost to Selling No. QuantityUnit Replace 1320 1,800 $3.5s $3.33 1333 1,5003.00 1426 1,4005.00 1437 1,600 4.00 1510 1,30 2.50 1522 1,100 3.33 1573 3,600 2.00 1626 1,600 5.22 Price 2.55 4.11 3.44 2.22 3.00 1.78 5.77 $5.00 3.89 5.55 3.55 3.61 4.22 2.78 6.66 $0.39 0.56 0.44 0.28 0.89 0.44 0.83 0.56 $1.39 0.56 1.11 1.00 0.67 0.56 0.56 1.11 From the information above, determine the amount of Bridgeport Company inventory. The amount of Bridgeport Company's inventory Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 0 of 3 All Rights Reserved. A Division of vacy Policy I 89 25Explanation / Answer
Inventory is to be valued at lower of cost or MARKET
where MARKET = Current replacement cost
subject to a ceiling and floor
Ceiling (Upper limit) = Net realizable value(NRV) = Estimated selling price - Addl costs to sell
Floor (Lower limit) = Net Realizable Value (NRV) - Normal Profit Margin
ANS = 42323
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42,323.00
a b c d e f g h i j Item no Qty Cost per unit Cost to replace Estimated selling price Cost of completion Normal profit Upper limit = NRV = d-e Lower limit = g-f Market =c but if c>g, then g , if c<h , then h Lower of b or i Total value = a x j 1320 1800 3.55 3.33 5 0.39 1.39 4.61 3.22 3.33 3.33 5,994.00 1333 1500 3 2.55 3.89 0.56 0.56 3.33 2.77 2.77 2.77 4,155.00 1426 1400 5 4.11 5.55 0.44 1.11 5.11 4 4.11 4.11 5,754.00 1437 1600 4 3.44 3.55 0.28 1 3.27 2.27 3.27 3.27 5,232.00 1510 1300 2.5 2.22 3.61 0.89 0.67 2.72 2.05 2.22 2.22 2,886.00 1522 1100 3.33 3 4.22 0.44 0.56 3.78 3.22 3.22 3.22 3,542.00 1573 3600 2 1.78 2.78 0.83 0.56 1.95 1.39 1.78 1.78 6,408.00 1626 1600 5.22 5.77 6.66 0.56 1.11 6.1 4.99 5.77 5.22 8,352.00ANS = 42323
If this answer was helpful , Please leave a thumbs up! If you are unsatisfied with my answer , please leave a note in the comments section and I will try my best to clarify it for you. All the best! Thanks :) Feel free to comment for any clarifications.
42,323.00
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