inventories additional valuation issues

Part 1

Sweet Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.

Item No.

Quantity

Cost

per Unit

Estimated

Selling Price

Cost to Complete

and Sell

1320

1,800

$3.65

$5.13

$1.82

1333

1,500

3.08

3.88

1.14

1426

1,400

5.13

5.70

1.60

1437

1,600

4.10

3.65

1.54

1510

1,300

2.57

3.71

1.60

1522

1,100

3.42

4.45

0.91

1573

3,600

2.05

2.85

1.37

1626

1,600

5.36

6.84

1.71

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

The amount of Sweet Company’s inventory. =$______

Part 2

Marin 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

1,500

$3.87

$3.63

$5.45

$0.42

$1.51

1333

1,200

3.27

2.78

4.24

0.61

0.61

1426

1,100

5.45

4.48

6.05

0.48

1.21

1437

1,300

4.36

3.75

3.87

0.30

1.09

1510

1,000

2.72

2.42

3.93

0.97

0.73

1522

800

3.63

3.27

4.60

0.48

0.61

1573

3,300

2.18

1.94

3.03

0.91

0.61

1626

1,300

5.69

6.29

7.26

0.61

1.21

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

The amount of Marin Company’s inventory. $______

Part 3

Sunland Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Inventory, May 1

$ 147,800

Purchases (gross)

637,400

Freight-in

31,000

Sales revenue

953,600

Sales returns

72,200

Purchase discounts

11,900

1. Compute the estimated inventory at May 31, assuming that the gross profit is 20% of net sales.

The estimated inventory at May 31

=$_____

2. Compute the estimated inventory at May 31, assuming that the gross profit is 20% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

The estimated inventory at May 31

=$___

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