Question

Whispering 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 1,300 $3.26 $3.06 $4.59 $0.36 $1.28
1333 1,000 2.75 2.35 3.57 0.51 0.51
1426 900 4.59 3.77 5.10 0.41 1.02
1437 1,100 3.67 3.16 3.26 0.26 0.92
1510 800 2.30 2.04 3.32 0.82 0.61
1522 600 3.06 2.75 3.88 0.41 0.51
1573 3,100 1.84 1.63 2.55 0.77 0.51
1626 1,100 4.79 5.30 6.12 0.51 1.02

From the information above, determine the amount of Whispering Company inventory.

The amount of Whispering 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	1,300	$3.26	$3.06	$4.59	$0.36	$1.28	$4.23	$2.95	$3.06	$3.06	$3,978
1333	1,000	2.75	2.35	3.57	0.51	0.51	$3.06	$2.55	$2.55	$2.55	$2,550
1426	900	4.59	3.77	5.1	0.41	1.02	$4.69	$3.67	$3.77	$3.77	$3,393
1437	1,100	3.67	3.16	3.26	0.26	0.92	$3.00	$2.08	$3.00	$3.00	$3,300
1510	800	2.3	2.04	3.32	0.82	0.61	$2.50	$1.89	$2.04	$2.04	$1,632
1522	600	3.06	2.75	3.88	0.41	0.51	$3.47	$2.96	$2.96	$2.96	$1,776
1573	3,100	1.84	1.63	2.55	0.77	0.51	$1.78	$1.27	$1.63	$1.63	$5,053
1626	1,100	4.79	5.3	6.12	0.51	1.02	$5.61	$4.59	$5.30	$4.79	$5,269
										Total	$26,951
The amount of Whispering Company’s inventory $26951