Exercise 97 Coronado Company follows the practice of pricing

Exercise 9-7

Coronado Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320 1,600 $3.46 $3.24 $4.86 $0.38 $1.35
1333 1,300 2.92 2.48 3.78 0.54 0.54
1426 1,200 4.86 4.00 5.40 0.43 1.08
1437 1,400 3.89 3.35 3.46 0.27 0.97
1510 1,100 2.43 2.16 3.51 0.86 0.65
1522 900 3.24 2.92 4.10 0.43 0.54
1573 3,400 1.94 1.73 2.70 0.81 0.54
1626 1,400 5.08 5.62 6.48 0.54 1.08

From the information above, determine the amount of Coronado Company inventory.

The amount of Coronado Company’s inventory
$

Solution

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 1600 3.46 3.24 4.86 0.38 1.35 4.48 3.13 3.24 3.24 5184 1333 1300 2.92 2.48 3.78 0.54 0.54 3.24 2.7 2.7 2.7 3510 1426 1200 4.86 4 5.4 0.43 1.08 4.97 3.89 4 4 4800 1437 1400 3.89 3.35 3.46 0.27 0.97 3.19 2.22 3.19 3.19 4466 1510 1100 2.43 2.16 3.51 0.86 0.65 2.65 2 2.16 2.16 2376 1522 900 3.24 2.92 4.1 0.43 0.54 3.67 3.13 3.13 3.13 2817 1573 3400 1.94 1.73 2.7 0.81 0.54 1.89 1.35 1.73 1.73 5882 1626 1400 5.08 5.62 6.48 0.54 1.08 5.94 4.86 5.62 5.08 7112 36147 The amount of Coronado Company’s inventory = $36147