Alan Company follows the practice of pricing its inventory a

Alan 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

1320

1,200

$3.20

$4.50

$1.60

1333

900

2.70

3.40

1.00

1426

800

4.50

5.00

1.40

1437

1,000

3.60

3.20

1.35

1510

700

2.25

3.25

1.40

1522

500

3.00

3.90

0.80

1573

3,000

1.80

2.50

1.20

1626

1,000

4.70

6.00

1.50

Instructions

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

Item No.	Quantity	Cost per Unit	Estimated Selling Price	Cost to Complete and Sell
1320	1,200	$3.20	$4.50	$1.60
1333	900	2.70	3.40	1.00
1426	800	4.50	5.00	1.40
1437	1,000	3.60	3.20	1.35
1510	700	2.25	3.25	1.40
1522	500	3.00	3.90	0.80
1573	3,000	1.80	2.50	1.20
1626	1,000	4.70	6.00	1.50

Solution

determine the amount of Sedato Company inventory.

Amount of sedato company inventory is $21565

Item No.	Quantity	Cost per unit	Net selling price	value under LCNRV	inventory cost
1320	1200	3.20	2.90	2.90	3480
1333	900	2.70	2.40	2.40	2160
1426	800	4.50	3.60	3.60	2880
1437	1000	3.60	1.85	1.85	1850
1510	700	2.25	1.85	1.85	1295
1522	500	3.00	3.10	3.00	1500
1573	3000	1.80	1.30	1.30	3900
1626	1000	4.70	4.50	4.50	4500
Total					21565