Question

Wildhorse 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 1,400 $3.78 $5.31 $1.89 1333 1,100 3.19 4.01 1.18 1426 1,000 5.31 5.90 1.65 1437 1,200 4.25 3.78 1.59 1510 900 2.66 3.84 1.65 1522 700 3.54 4.60 0.94 1573 3,200 2.12 2.95 1.42 1626 1,200 5.55 7.08 1.77 From the information above, determine the amount of Wildhorse Company inventory.

Answer 1

Wildhorse Company

The amount of the inventory is:

= $30,496.

Step-by-step explanation:

a) Data and Calculations:

Item No. Quantity Cost per Estimated Cost to NRV LCNRV Inventory

Unit Selling Price Sell Value

1320 1,400 $3.78 $5.31 $1.89 $3.42 $3.42 $4,788

1333 1,100 3.19 4.01 1.18 2.83 2.83 3,113

1426 1,000 5.31 5.90 1.65 4.25 4.25 4,250

1437 1,200 4.25 3.78 1.59 2.19 2.19 2,628

1510 900 2.66 3.84 1.65 2.19 2.19 1,971

1522 700 3.54 4.60 0.94 3.66 3.54 2,478

1573 3,200 2.12 2.95 1.42 1.53 1.53 4,896

1626 1,200 5.55 7.08 1.77 5.31 5.31 6,372

Inventory value = $30,496