Kieso Intermediate Accounting 16e n Assignment Exercise 97 I

Kieso, Intermediate Accounting, 16e n Assignment Exercise 9-7 Indigo Company follows the practice of pricing its inventory at the l lower-of-cost-or-market, on an individual-item basis. pert Cost to Estimated Completion and Selling Price Disposal 0.36 0.51 0.41 0.26 0.82 0.41 0.77 0.51 Profit $1.28 0.51 1.02 0.92 0.61 0.51 0.51 1.02 No. Quantity Unit Replace 1320 1,300 3.26 1333 1,000 2.75 2.35 1426 900 459 3.77 $3.06 $4.59 S.10 3.26 3.32 3.88 2.55 6.12 1437 1,100 3.67 3.16 1510 800 2.30 2.04 1522 600 3.06 1573 3,100 1.84 1.63 2.75 1626 1,100 4.79 5.30 From the information above, determine the amount of Indigo Company inventory The amount of Indigo Company\'s inventorys LINK TO TEXT

Solution

Market value here will be net realisable value (that is selling price less selling expense/diposal expense) or replacement cost which ever is higher Item No. Qty Cost p.u Cost to replace SP Cost of disposal Net realisable value Normal Profit NRV-Profit Designated Value Final Inventory Value (SP-Cost of disposal) (Lower of Cost or market value(MV is higher of replacement or NRV-Profit) 1320 1300 3.26 3.06 4.59 0.36 4.23 1.28 2.95 3.06 3978 1333 1000 2.75 2.35 3.57 0.51 3.06 0.51 2.55 2.55 2550 1426 900 4.59 3.77 5.1 0.41 4.69 1.02 3.67 3.77 3393 1437 1100 3.67 3.16 3.26 0.26 3 0.92 2.08 3.16 3476 1510 800 2.3 2.04 3.32 0.82 2.5 0.61 1.89 2.04 1632 1522 600 3.06 2.75 3.88 0.41 3.47 0.51 2.96 2.96 1776 1573 3100 1.84 1.63 2.55 0.77 1.78 0.51 1.27 1.63 5053 1626 1100 4.79 5.3 6.12 0.51 5.61 1.02 4.59 4.79 5269 Total 27127