Question

Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

Item No.		Quantity			Cost per Unit			Cost to Replace			Estimated Selling Price			Cost of Completion and Disposal			Normal Profit
1320		1,600			$3.97			$3.72			$5.58			$0.43			$1.55
1333		1,300			3.35			2.85			4.34			0.62			0.62
1426		1,200			5.58			4.59			6.20			0.50			1.24
1437		1,400			4.46			3.84			3.97			0.31			1.12
1510		1,100			2.79			2.48			4.03			0.99			0.74
1522		900			3.72			3.35			4.71			0.50			0.62
1573		3,400			2.23			1.98			3.10			0.93			0.62
1626		1,400			5.83			6.45			7.44			0.62			1.24

From the information above, determine the amount of Wildhorse Company's inventory.

Answer 1

Item No.	Quantity	Cost per Unit	Cost to Replace	Estimated Selling Price	Cost of Completion and Disposal	Normal Profit	NRV	NRV less normal profit	Market	Lower of cost or market	Inventory value
1320	1,600	$3.97	$3.72	$5.58	$0.43	$1.55	$5.15	$3.60	$3.72	$3.72	$5,952
1333	1,300	3.35	2.85	4.34	0.62	0.62	$3.72	$3.10	$3.10	$3.10	$4,030
1426	1200	5.58	4.59	6.2	0.5	1.24	$5.70	$4.46	$4.59	$4.59	$5,508
1437	1,400	4.46	3.84	3.97	0.31	1.12	$3.66	$2.54	$3.66	$3.66	$5,124
1510	1100	2.79	2.48	4.03	0.99	0.74	$3.04	$2.30	$2.48	$2.48	$2,728
1522	900	3.72	3.35	4.71	0.5	0.62	$4.21	$3.59	$3.59	$3.59	$3,231
1573	3,400	2.23	1.98	3.1	0.93	0.62	$2.17	$1.55	$1.98	$1.98	$6,732
1626	1,400	5.83	6.45	7.44	0.62	1.24	$6.82	$5.58	$6.45	$5.83	$8,162
										Total	$41,467
The amount of Wildhorse Company's inventory = $41467