Exercise 9-7 Headland Company follows the practice of pricing its inventory at t
ID: 2562926 • Letter: E
Question
Exercise 9-7 Headland Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis Cost per Estimated Selling Price Cost of Completion and Disposal Item Normal Profit $1.28 0.51 1.02 0.92 0.61 0.51 0.51 1.02 Cost to No. Quantity Unit Replace 1320 1,300 1333 1,000 1426 1437 1,100 1510 1522 1573 3,100 16261,100 $3.26 2.75 4.59 3.67 2.30 3.06 1.84 4.79 $3.06 2.35 3.77 3.16 2.04 2.75 1.63 5.30 $4.59 3.57 5.10 3.26 3.32 3.88 2.55 6.12 $0.36 0.51 0.41 0.26 0.82 0.41 0.77 0.51 900 800 600 From the information above, determine the amount of Headland Company inventory The amount of Headland Company's inventoryExplanation / Answer
(a)
(b)
(c)
(d) = (b) - (c)
(e)
(f) = (d) - (e)
Item
Estimated Selling Price
Cost of Completion and Disposal
NRV
Normal Profit
NRV less Normal Profit
1320
4.59
0.36
4.23
1.28
2.95
1333
3.57
0.51
3.06
0.51
2.55
1426
5.1
0.41
4.69
1.02
3.67
1437
3.26
0.26
3
0.92
2.08
1510
3.32
0.82
2.5
0.61
1.89
1522
3.88
0.41
3.47
0.51
2.96
1573
2.55
0.77
1.78
0.51
1.27
1626
6.12
0.51
5.61
1.02
4.59
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h) = (g) * (f)
Item
Cost Per Unit
Replacement cost
NRV
NRV less Normal Profit
Designated Market Value
Quantity
Final Inventory Value
1320
3.26
3.06
4.23
2.95
3.06
1300
3978
1333
2.75
2.35
3.06
2.55
2.55
1000
2550
1426
4.59
3.77
4.69
3.67
3.77
900
3393
1437
3.67
3.16
3
2.08
3
1100
3300
1510
2.3
2.04
2.5
1.89
2.04
800
1632
1522
3.06
2.75
3.47
2.96
2.96
600
1776
1573
1.84
1.63
1.78
1.27
1.63
3100
5053
1626
4.79
5.3
5.61
4.59
5.3
1100
5269
[1100*4.79]
The amount of headland company's inventory
26951
(a)
(b)
(c)
(d) = (b) - (c)
(e)
(f) = (d) - (e)
Item
Estimated Selling Price
Cost of Completion and Disposal
NRV
Normal Profit
NRV less Normal Profit
1320
4.59
0.36
4.23
1.28
2.95
1333
3.57
0.51
3.06
0.51
2.55
1426
5.1
0.41
4.69
1.02
3.67
1437
3.26
0.26
3
0.92
2.08
1510
3.32
0.82
2.5
0.61
1.89
1522
3.88
0.41
3.47
0.51
2.96
1573
2.55
0.77
1.78
0.51
1.27
1626
6.12
0.51
5.61
1.02
4.59
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