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Michael Bolton 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 1,900 $4.64 $4.35 $6.53 $0.51 $1.81
1333 1,600 3.92 3.34 5.08 0.73 0.73
1426 1,500 6.53 5.37 7.25 0.58 1.45
1437 1,700 5.22 4.50 4.64 0.36 1.31
1510 1,400 3.26 2.90 4.71 1.16 0.87
1522 1,200 4.35 3.92 5.51 0.58 0.73
1573 3,700 2.61 2.32 3.63 1.09 0.73
1626 1,700 6.82 7.54 8.70 0.73 1.45

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

The amount of Sedato Company

Respuesta :

Answer:

The value of inventory of $58,666.00

Explanation:

In the attached I chose the lower of of cost or market value in valuing the inventory.

Cost is cost price of the item is compared with lower of NRV and replacement cost,eventually the lower of the three is chosen in valuing the inventory.

However,it is noteworthy that the lower of NRV and replacement cost cannot be lower than NRV less normal profit,in an event when the lower of the two is lower than NRV less normal profit,NRV less normal profit is chosen.

Kindly find attached.

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