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23 June, 08:05

Grouper Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item Quantity Cost Cost to Estimated Cost Of Normal NO. Per Replace Selling Completion Profit Unit Price and Disposal 1,320 1,500 $3.87 $3.63 $5.45 $0.421333 1,200 3.27 2.78 4.24 0.61 1426 1,100 5.45 4.48 6.05 0.48 1437 1,300 4.36 3.75 3.87 0.30 1510 1,000 2.72 2.42 3.93 0.97 1522 1,200 3.63 3.27 4.60 0.48 1573 3,300 2.18 1.94 3.03 0.91 1626 1,300 5.69 6.29 7.26 0.61 From the information above, determine the amount of Grouper Company inventory.

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  1. 23 June, 08:23
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    Normal profit was missing, so I looked for it:

    Item Q Cost Cost to Estimated Cost Normal*

    No. p / unit replace selling price of Completion profit

    and Disposal

    1320 1,500 $3.87 $3.63 $5.45 $0.42 $1.38

    1333 1,200 $3.27 $2.78 $4.24 $0.61 $0.67

    1426 1,100 $5.45 $4.48 $6.05 $0.48 $0.47

    1437 1,300 $4.36 $3.75 $3.87 $0.30 $0.25

    1510 1,000 $2.72 $2.42 $3.93 $0.97 $1.18

    1522 1,200 $3.63 $3.27 $4.60 $0.48 $0.84

    1573 3,300 $2.18 $1.94 $3.03 $0.91 $0.93

    1626 1,300 $5.69 $6.29 $7.26 $0.61 $1.56

    we have to first determine the ceiling NRV and floor NRV

    Item Cost to Estimated Cost NRV NRV

    No. replace selling price of Completion ceiling floor

    and Disposal

    1320 $3.63 $5.45 $0.42 $5.03 $3.65

    1333 $2.78 $4.24 $0.61 $3.63 $2.96

    1426 $4.48 $6.05 $0.48 $5.57 $5.10

    1437 $3.75 $3.87 $0.30 $3.57 $3.32

    1510 $2.42 $3.93 $0.97 $2.96 $1.78

    1522 $3.27 $4.60 $0.48 $4.12 $3.28

    1573 $1.94 $3.03 $0.91 $2.12 $1.19

    1626 $6.29 $7.26 $0.61 $6.65 $5.09

    we have to determine the market value:

    Item Cost to NRV NRV Market value

    No. replace ceiling floor (middle of the 3)

    1320 $3.63 $5.03 $3.65 $3.63

    1333 $2.78 $3.63 $2.96 $2.96

    1426 $4.48 $5.57 $5.10 $5.10

    1437 $3.75 $3.57 $3.32 $3.57

    1510 $2.42 $2.96 $1.78 $2.42

    1522 $3.27 $4.12 $3.28 $3.28

    1573 $1.94 $2.12 $1.19 $1.94

    1626 $6.29 $6.65 $5.09 $6.29

    Item Market value Cost Quantity Inventory

    No. per unit value

    1320 $3.63 $3.87 1,500 $5,445

    1333 $2.96 $3.27 1,200 $3,552

    1426 $5.10 $5.45 1,100 $5,610

    1437 $3.57 $4.36 1,300 $4,641

    1510 $2.42 $2.72 1,000 $2,420

    1522 $3.28 $3.63 1,200 $3,939

    1573 $1.94 $2.18 3,300 $6,402

    1626 $6.29 $5.69 1,300 $7,397

    total $39,406
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