Exercise 97 x Your answer is incorrect Try again Pronghorn C

Exercise 9-7 x Your answer is incorrect. Try again. Pronghorn Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Cost of Estimated Completion Cost per Selling Price Item Normal Profit $1.51 0.61 1.21 1.09 0.73 0.61 0.61 1.21 Cost to and Disposal No. Quantity Unit Replace 1320 1333 1,200 1426 1,100 14371,300 1510 1,000 1522 1573 3,300 1626 1,300 $3.87 3.27 5.45 $3.63 2.78 4.48 3.75 2.42 3.27 1.94 6.29 $5.45 4.24 6.05 3.87 3.93 4.60 3.03 7.26 1,500 $0.42 0.61 0.48 0.30 0.97 0.48 0.91 0.61 2.72 3.63 2.18 5.69 800 From the information above, determine the amount of Pronghorn Company inventory The amount of Pronghorn 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 normal profit Market Lower of cost or market Inventory value 1320 1,500 $3.87 $3.63 $5.45 $0.42 $1.51 $5.03 $3.52 $3.63 $3.63 $5,445 1333 1,200 3.27 2.78 4.24 0.61 0.61 $3.63 $3.02 $3.02 $3.02 $3,624 1426 1100 5.45 4.48 6.05 0.48 1.21 $5.57 $4.36 $4.48 $4.48 $4,928 1437 1,300 4.36 3.75 3.87 0.3 1.09 $3.57 $2.48 $3.57 $3.57 $4,641 1510 1000 2.72 2.42 3.93 0.97 0.73 $2.96 $2.23 $2.42 $2.42 $2,420 1522 800 3.63 3.27 4.6 0.48 0.61 $4.12 $3.51 $3.51 $3.51 $2,808 1573 3,300 2.18 1.94 3.03 0.91 0.61 $2.12 $1.51 $1.94 $1.94 $6,402 1626 1,300 5.69 6.29 7.26 0.61 1.21 $6.65 $5.44 $6.29 $5.69 $7,397 Total $37,665 The amount of Pronghorn Company’s inventory = $37665