Computing Lower of Cost or Market Values
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Sedato 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 1,200 $3.20 $3.00 $4.50 $0.35 $1.25
1333 900 2.70 2.30 3.40 0.50 0.50
1426 800 4.50 3.70 5.00 0.40 1.00
1437 1,000 3.60 3.10 3.20 0.45 0.90
1510 700 2.25 2.00 3.25 0.80 0.60
1522 500 3.00 2.70 3.90 0.40 0.50
1573 3,000 1.80 1.60 2.50 0.75 0.50
1626 1,000 4.70 5.20 6.00 0.50 1.00
Instructions:
From the information above, determine the amount of Sedato Company inventory.
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Solution Summary
This solution illustrates how to compute the lower of cost or market value of inventory under several different scenarios.
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Please see the attached Word 97-2003 document.
Sedato 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 ...
Purchase this Solution
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