Vaughn Company follows the practice of pricing its inventory

Vaughn 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

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

$

Item No.		Quantity		Cost per Unit		Estimated Selling Price		Cost to Complete and Sell
1320		1,400		$3.78		$5.31		$1.89
1333		1,100		3.19		4.01		1.18
1426		1,000		5.31		5.90		1.65
1437		1,200		4.25		3.78		1.59
1510		900		2.66		3.84		1.65
1522		700		3.54		4.60		0.94
1573		3,200		2.12		2.95		1.42
1626		1,200		5.55		7.08		1.77

Solution

Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell NRV Lower of cost or NRV Inventory value 1320 1,400 $3.78 $5.31 $1.89 $3.42 $3.42 $4,788 1333 1,100 3.19 4.01 $1.18 $2.83 $2.83 $3,113 1426 1000 5.31 5.9 $1.65 $4.25 $4.25 $4,250 1437 1,200 4.25 3.78 $1.59 $2.19 $2.19 $2,628 1510 900 2.66 3.84 $1.65 $2.19 $2.19 $1,971 1522 700 3.54 4.6 $0.94 $3.66 $3.54 $2,478 1573 3,200 2.12 2.95 $1.42 $1.53 $1.53 $4,896 1626 1,200 5.55 7.08 $1.77 $5.31 $5.31 $6,372 Total $30,496 The amount of Vaughn Company’s inventory = $30496