Residential Pumps
Inventory at Feb. 28:	238	$ 476	$ 113,228
Purchases:
March 10	595	$ 536	$ 318920
March 20	476	$ 565	$ 268940
March 30	357	$ 595	$ 212415
Sales
March 15	595	$ 643	$ 382585
March 25	476	$ 678	$ 322728
Inventory at March 31:	595
Commercial Pumps
Inventory at Feb. 28:	714	$ 952	$ 679728
Purchases
March 3	714	$ 1071	$ 764694
March 12	357	$ 1131	$ 403767
March 21	595	$ 1190	$ 708050
Sales
March 18	1071	$ 1285	$ 1376235
March 29	714	$ 1357	$ 968,898
Inventory at March 31	595

In addition to the above information, due to a downturn in the economy that has hit Waterways commercial customers especially hard, Waterway expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Waterway has developed the following additional information.

		Commercial Pumps		Residential Pumps
Net realizable value (per unit)		$1,071		$690

The normal profit margin is 16.67% of cost. Waterway uses the FIFO accounting method.

Determine the dollar amount that Waterway should report on its March 31 balance sheet for inventory. Assume Waterway applies lower-of-cost-or-net realizable value at the individual product level.

Total amount of inventory

$

eTextbook and Media

Incorrect answer iconYour answer is incorrect.

Determine the dollar amount that Waterway should report on its March 31 balance sheet for inventory. Assume Waterway applies lower-of-cost-or-market at the major category level. Waterway places both commercial and residential pumps into the same (and only) category.

Total amount of inventory

$