Data on the physical inventory of Katus Products Co. as of December 31 follow: Market Value per Unit (Net Realizable Value) $ 56 Inventory Item Inventory Quantity A54 37 C77 24 178 F66 30 132 H83 21 545 K12 375 Q58 90 18 S36 235 20 V97 140 Y88 744 17 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Last Next-to-the-Last Purchases Invoice Purchases Invoice Quantity Unit Purchased Cost Unit Inventory Item Quantity Purchased Cost $ 60 A54 30 40 $58 C7 25 174 15 180 F66 20 130 15 128 H83 547 15 540 K12 500 500 Q58 75 25 80 26 S36 256 4 260 V97 100 17 115 16 Y88 10 750 740 Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Market Value per Unit (Net Realizable Value) Total Inventory Item Inventory Quantity Cost per Unit LCM Cost Market A54 37 30 60 $56 $1,800 $1,680 58 56 406 392 $2,206 $2,072 $2,072
Data on the physical inventory of Katus Products Co. as of December 31 follow: Market Value per Unit (Net Realizable Value) $ 56 Inventory Item Inventory Quantity A54 37 C77 24 178 F66 30 132 H83 21 545 K12 375 Q58 90 18 S36 235 20 V97 140 Y88 744 17 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Last Next-to-the-Last Purchases Invoice Purchases Invoice Quantity Unit Purchased Cost Unit Inventory Item Quantity Purchased Cost $ 60 A54 30 40 $58 C7 25 174 15 180 F66 20 130 15 128 H83 547 15 540 K12 500 500 Q58 75 25 80 26 S36 256 4 260 V97 100 17 115 16 Y88 10 750 740 Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Market Value per Unit (Net Realizable Value) Total Inventory Item Inventory Quantity Cost per Unit LCM Cost Market A54 37 30 60 $56 $1,800 $1,680 58 56 406 392 $2,206 $2,072 $2,072
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Data on the physical inventory of Katus Products Co. as of December 31 follow:
Market Value per Unit
(Net
Realizable Value)
$ 56
Inventory
Item
Inventory
Quantity
A54
37
C77
24
178
F66
30
132
H83
21
545
K12
375
Q58
90
18
S36
235
20
V97
140
Y88
744
17
Quantity and cost data from the last purchases invoice of the year and the next-to-the-last
purchases invoice are summarized as follows:
Last
Next-to-the-Last
Purchases Invoice
Purchases Invoice
Quantity Unit
Purchased Cost
Unit
Inventory
Item
Quantity
Purchased Cost
$ 60
A54
30
40
$58
C7
25
174
15
180
F66
20
130
15
128
H83
547
15
540
K12
500
500
Q58
75
25
80
26
S36
256
4
260
V97
100
17
115
16
Y88
10
750
740
Instructions
Determine the inventory at cost as well as at the lower of cost or market, using the first-in,
first-out method. Record the appropriate unit costs on the inventory sheet and complete
the pricing of the inventory. When there are two different unit costs applicable to an item:
1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the LCM
column. The first item on the inventory sheet has been completed as an example.
Inventory Sheet
December 31
Market Value per
Unit (Net
Realizable Value)
Total
Inventory
Item
Inventory
Quantity
Cost per
Unit
LCM
Cost
Market
A54
37 30
60
$56
$1,800 $1,680
58
56
406
392
$2,206 $2,072
$2,072
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