Question

Windsor Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Cost per Unit Estimated Selling Price Cost to Complete and Sell Item No. Quantity 1320 2,000 $3.46 $4.86 $1.73 1333 1,700 2.92 3.67 1.08 1426 1,600 4.86 5.40 1.51 1437 1,800 3.89 3.46 1.46 1510 1,500 2.43 3.51 1.51 1522 1,300 3.24 4.21 0.86 1573 3,800 1.94 2.70 1.30 1626 1,800 5.08 6.48 1.62 From the information above, determine the amount of Windsor Company inventory. The amount of Windsor Company's inventory $ Toutbool and Media

Answer 1

The amount of Windsor Company's inventory can be determined by calculating the net realizable value (NRV) for each item in the inventory. NRV is calculated as the estimated selling price minus the cost to complete and sell the item. The inventory amount is the sum of the NRV for each item. The inventory amount is $23.22.

Step-by-step explanation:

The amount of Windsor Company's inventory can be determined by calculating the net realizable value (NRV) for each item in the inventory. NRV is calculated as the estimated selling price minus the cost to complete and sell the item. The inventory amount is the sum of the NRV for each item.

Let's calculate the NRV for each item:

• Item 1320: NRV = $4.86 - $1.73 = $3.13
• Item 1333: NRV = $3.67 - $1.08 = $2.59
• Item 1426: NRV = $5.40 - $1.51 = $3.89
• Item 1437: NRV = $3.46 - $1.46 = $2.00
• Item 1510: NRV = $3.51 - $1.51 = $2.00
• Item 1522: NRV = $4.21 - $0.86 = $3.35
• Item 1573: NRV = $2.70 - $1.30 = $1.40
• Item 1626: NRV = $6.48 - $1.62 = $4.86

The inventory amount is the sum of the NRV for each item:

Inventory amount = $3.13 + $2.59 + $3.89 + $2.00 + $2.00 + $3.35 + $1.40 + $4.86 = $23.22

Therefore, the amount of Windsor Company's inventory is $23.22.