Question
The inventory of 3T Company on December 31, 2014, consists of the following items.
Part No.
Quantity
Cost per Unit
Cost to Replace per Unit
a Part No. 121 is obsolete and has a realizable value of $0.55 each as scrap.
(a) Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market 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.
|
Part No. |
|
Quantity |
|
Cost per Unit |
|
Cost to Replace per Unit |
||||
|
110 |
|
|
630 |
|
|
$99 |
|
|
$110 |
|
|
111 |
|
|
1,110 |
|
|
66 |
|
|
57 |
|
|
112 |
|
|
510 |
|
|
88 |
|
|
84 |
|
|
113 |
|
|
260 |
|
|
187 |
|
|
198 |
|
|
120 |
|
|
470 |
|
|
226 |
|
|
229 |
|
|
121 |
a |
|
1,700 |
|
|
18 |
|
|
15 |
|
|
122 |
|
|
360 |
|
|
264 |
|
|
259 |
|
