Problem: Sedato 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
|
1,200
|
$3.20
|
$3.00
|
$4.50
|
$0.35
|
$1.25
|
|
1333
|
900
|
2.70
|
2.30
|
3.40
|
0.50
|
0.50
|
|
1426
|
800
|
4.50
|
3.70
|
5.00
|
0.40
|
1.00
|
|
1437
|
1,000
|
3.60
|
3.10
|
3.20
|
0.45
|
0.90
|
|
1510
|
700
|
2.25
|
2.00
|
3.25
|
0.80
|
0.60
|
|
1522
|
500
|
3.00
|
2.70
|
3.90
|
0.40
|
0.50
|
|
1573
|
3,000
|
1.80
|
1.60
|
2.50
|
0.75
|
0.50
|
|
1626
|
1,000
|
4.70
|
5.20
|
6.00
|
0.50
|
1.00
|
Instructions:
From the information above, determine the amount of Sedato Company inventory.