Market Value per Unit (Net Realizable Value) Inventory Item Inventory Quantity A54 37 $ 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744
Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:
Last Purchases Invoice Next-to-the-Last Purchases Invoice Inventory Item Quantity Purchased Unit Cost Quantity Purchased Unit Cost A54 30 $ 60 40 $ 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740
Instructions
Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item:
1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example.
Inventory Sheet December 31 Inventory Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Total Cost Market LCM A54 37 30 60 $56 $1,800 $1,680 7 58 56 406 392 $2,206 $2,072 $2,072
Answer:
Market
Value per
Cost Unit (Net
Inventory per Realizable
Item Unit Value) Cost Market LCM
A54 37 30 $ 60 $ 56 $ 1,800 $ 1,680
7 58 56 406 392
2,206 2,072 $ 2,072
C77 24 174 178 4,176 4,272 4,176
F66 30 20 130 132 2,600 2,640
10 128 132 1,280 1,320
3,880 3,960 3,880
H83 21 6 547 545 3,282 3,270
15 540 545 8,100 8,175
11,382 11,445 11,382
K12 375 6 5 2,250 1,875 1,875
Q58 90 75 25 18 1,875 1,350
15 26 18 390 270
2,265 1,620 1,620
S36 8 5 256 235 1,280 1,175
3 260 235 780 705
2,060 1,880 1,880
V97 140 100 17 20 1,700 2,000
40 16 20 640 800
2,340 2,800 2,340
Y88 17 10 750 744 7,500 7,440
7 740 744 5,180 5,208
12,680 12,648 12,648
Total$43,239 $42,572 $41,873