Question

Sarasota 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			$3.42			$3.21			$4.82			$0.37			$1.34
1333		1,300			2.89			2.46			3.75			0.54			0.54
1426		1,200			4.82			3.96			5.35			0.43			1.07
1437		1,400			3.85			3.32			3.42			0.27			0.96
1510		1,100			2.41			2.14			3.48			0.86			0.64
1522		900			3.21			2.89			4.07			0.43			0.54
1573		3,400			1.93			1.71			2.68			0.80			0.54
1626		1,400			5.03			5.56			6.42			0.54			1.07

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

The amount of Sarasota Company’s inventory : $

The answer is NOT 38635 , like they answered here before.

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	$3.42	$3.21	$4.82	$0.37	$1.34	$4.45	$3.11	$3.21	$3.21	$5,136
1333	1,300	2.89	2.46	3.75	0.54	0.54	$3.21	$2.67	$2.67	$2.67	$3,471
1426	1200	4.82	3.96	5.35	0.43	1.07	$4.92	$3.85	$3.96	$3.96	$4,752
1437	1,400	3.85	3.32	3.42	0.27	0.96	$3.15	$2.19	$3.15	$3.15	$4,410
1510	1100	2.41	2.14	3.48	0.86	0.64	$2.62	$1.98	$2.14	$2.14	$2,354
1522	900	3.21	2.89	4.07	0.43	0.54	$3.64	$3.10	$3.10	$3.10	$2,790
1573	3,400	1.93	1.71	2.68	0.8	0.54	$1.88	$1.34	$1.71	$1.71	$5,814
1626	1,400	5.03	5.56	6.42	0.54	1.07	$5.88	$4.81	$5.56	$5.03	$7,042
										Total	$35,769
The amount of Sarasota Company’s inventory : $35769