1. Inventory

The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory.

NOTE on the Statement of Earnings use Cost of Goods Sold from the trial balance - do not calculate the cost of goods sold.

In the Excel spreadsheet, see the tab Inventory Detail to perform any necessary calculations.

	2019		2020
Cost of Goods Sold	3,717,400		4,414,700

B D E F G H | Inventory Items on Hand Item # Description Cost Market LCM Selling Price Selling costs 7% of selling price 14566SA X205 30 HP Machine 145669A X205 30 HP Machine 147502A X205 30 HP Machine 147503A X205 30 HP Machine 147504A X205 30 HP Machine 360010X G350 60 HP Machine 360011X G350 60 HP Machine 360012X G350 60 HP Machine 360013X G350 60 HP Machine 598750W 1500 100HP Machine 598751W 1500 100HP Machine 598752W 1500 100HP Machine 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 35,900.00 47,900.00 35,900.00 47,900.00 35,900.00 47,900.00 35,900.00 47,900.00 98,700.00 102,000.00 98,700.00 102,000.00 98,700.00 102,000.00 507,200.00 B D E F G H | Inventory Items on Hand Item # Description Cost Market LCM Selling Price Selling costs 7% of selling price 14566SA X205 30 HP Machine 145669A X205 30 HP Machine 147502A X205 30 HP Machine 147503A X205 30 HP Machine 147504A X205 30 HP Machine 360010X G350 60 HP Machine 360011X G350 60 HP Machine 360012X G350 60 HP Machine 360013X G350 60 HP Machine 598750W 1500 100HP Machine 598751W 1500 100HP Machine 598752W 1500 100HP Machine 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 13,500.00 32,500.00 35,900.00 47,900.00 35,900.00 47,900.00 35,900.00 47,900.00 35,900.00 47,900.00 98,700.00 102,000.00 98,700.00 102,000.00 98,700.00 102,000.00 507,200.00