Acc422 Intermediate Accounting: E9-1 The inventory of Oheto Company on December 31

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Acc422 Intermediate Accounting

E9-1
The inventory of Oheto Company on December 31, 2011, consists of the following items.
Part No. Quantity Cost Per Unit Cost to Replace per Unit
110 600 $95 $100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 1,600 16 14
122 300 240 235
Part No. 121 is obsolete and has a realizable value of each as scrap: $0.50

Instructions:
Complete the table above by inserting the correct values or formulas into the yellow highlighted cells. From this data, answer the following two questions:
a. Determine the inventory as of December 31, 2011, 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.
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