The inventory of Oheto Company on December 31, 2011, consists of the following items.
|
Part |
No. Quantity |
Cost Per Unit |
Cost Per Unit |
|
110 |
600 |
$95 |
$100 |
|
111 |
1,000 |
60 |
52 |
|
112 |
500 |
80 |
76 |
|
113 |
200 |
170 |
180 |
|
120 |
400 |
205 |
208 |
|
121 |
1,600 |
16 |
14 |
|
122 |
300 |
240 |
235 |
Part No. 121 is obsolete and has a realizable value of each as scrap: $0.50
Instructions:
Complete the table above by inserting the correct values or formulas into the yellow highlighted cells. From this data, answer the following two questions:
a. Determine the inventory as of December 31, 2011, 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.