Question
Fitch Corp. has the following items in its ending inventory: Product Units on hand Cost per unit Replacement cost per unit Expected selling price Normal
Fitch Corp. has the following items in its ending inventory:
| Product | Units on hand | Cost per unit | Replacement cost per unit | Expected selling price | Normal profit margin |
| A | 2,000 | $84.00 | $88.70 | $98.00 | 40% |
| B | 6,000 | $66.00 | $73.70 | $76.00 | 30% |
| C | 5,000 | $56.00 | $58.70 | $50.00 | 20% |
| D | 11,000 | $49.00 | $30.60 | $32.00 | 10% |
Estimated cost to complete and dispose of inventory is negligible. What is the value of Fitch's inventory, applying lower of cost or market to individual items?
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Auditing A Practical Approach With Data Analytics
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
2nd Edition
1119786045, 978-1119785996
