Question
Lower-of-Cost-or-Market Inventory Data on the physical inventory of Ashwood Products Company as of December 31 follow: Description Inventory Quantity Market Value per Unit (Net Realizable
Lower-of-Cost-or-Market Inventory
Data on the physical inventory of Ashwood Products Company as of December 31 follow:
Description | Inventory Quantity | Market Value per Unit (Net Realizable Value) | ||||
B12 | 38 | $ 57 | ||||
E41 | 18 | 180 | ||||
G19 | 33 | 126 | ||||
L88 | 18 | 550 | ||||
N94 | 400 | 7 | ||||
P24 | 90 | 18 | ||||
R66 | 8 | 250 | ||||
T33 | 140 | 20 | ||||
Z16 | 15 | 752 |
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 | ||||||||||||
Description | Quantity Purchased | Unit Cost | Quantity Purchased | Unit Cost | |||||||||
B12 | 30 | $ 60 | 30 | $ 59 | |||||||||
E41 | 35 | 178 | 20 | 180 | |||||||||
G19 | 20 | 128 | 25 | 129 | |||||||||
L88 | 10 | 563 | 10 | 560 | |||||||||
N94 | 500 | 8 | 500 | 7 | |||||||||
P24 | 80 | 22 | 50 | 21 | |||||||||
R66 | 5 | 248 | 4 | 260 | |||||||||
T33 | 100 | 21 | 100 | 19 | |||||||||
Z16 | 10 | 750 | 9 | 745 |
Required:
Determine the inventory at cost and also at the lower of cost or market applied on an item-by-item basis, 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, proceed as follows:
Insert the quantity and unit cost of the last purchase.
On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
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 | |||||||
---|---|---|---|---|---|---|---|
Description | Inventory Quantity | Cost Per Unit | Market Value per Unit (Net Realizable Value) | Total | |||
Cost | Market | LCM | |||||
B12 | 38 | 30 | $60 | $57 | $1,800 | $1,710 | |
8 | 59 | 57 | 472 | 456 | |||
2,272 | 2,166 | $2,166 | |||||
E41 | 18 | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 | fill in the blank 5 | |
G19 | 33 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | |
fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | |||
fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | |||||
L88 | 18 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | |
fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 | |||
fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | |||||
N94 | 400 | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 | fill in the blank 36 | |
P24 | 90 | fill in the blank 37 | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | |
fill in the blank 42 | fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | |||
fill in the blank 47 | fill in the blank 48 | fill in the blank 49 | |||||
R66 | 8 | fill in the blank 50 | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | fill in the blank 54 | |
fill in the blank 55 | fill in the blank 56 | fill in the blank 57 | fill in the blank 58 | fill in the blank 59 | |||
fill in the blank 60 | fill in the blank 61 | fill in the blank 62 | |||||
T33 | 140 | fill in the blank 63 | fill in the blank 64 | fill in the blank 65 | fill in the blank 66 | fill in the blank 67 | |
fill in the blank 68 | fill in the blank 69 | fill in the blank 70 | fill in the blank 71 | fill in the blank 72 | |||
fill in the blank 73 | fill in the blank 74 | fill in the blank 75 | |||||
Z16 | 15 | fill in the blank 76 | fill in the blank 77 | fill in the blank 78 | fill in the blank 79 | fill in the blank 80 | |
fill in the blank 81 | fill in the blank 82 | fill in the blank 83 | fill in the blank 84 | fill in the blank 85 | |||
fill in the blank 86 | fill in the blank 87 | fill in the blank 88 | |||||
Total | $fill in the blank 89 | $fill in the blank 90 | $fill in the blank 91 |
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