The inventory of Oheto Company on December 31, 2013, consists of the following items.
|
Part No. |
Quantity |
Cost per unit |
Cost to Replace per Unit |
|
110 |
690 |
131 |
138 |
|
111 |
1,050 |
83 |
72 |
|
112 |
550 |
110 |
105 |
|
113 |
260 |
235 |
248 |
|
120 |
420 |
283 |
287 |
|
121a |
$1,670 |
22-Jan-00 |
19 |
|
122 |
360 |
331 |
324 |
a Part No. 121 is obsolete and has a realizable value of $0.7 each as scrap.
Instructions:
(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-ormarket method, applying this method directly to each item.
(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.