AC 302 CHAPTER 9 QUESTION 1

AC 302 CHAPTER 9 QUESTION 1
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2013, consists of the following items.						
						
	Part No.	Quantity	Cost Per Unit	Cost to Replace per Unit		
	110 	600 	$95 	$100.00 		
	111 	1,000 	60 	$52.00 		
	112 	500 	80 	$76.00 		
	113 	200 	170 	$180.00 		
	120 	400 	205 	$208.00 		
	121 	1,600 	16 	$14.00 		
	122 	300 	240 	$235.00 		
Part No. 121 is obsolete and has a realizable value of each as scrap:					$0.50	
						
Part No.	Quantity	"Per Unit
Cost"	Market	Total Cost	"Total
Market"	"Lower of
Cost or
Market"
110 	600 	$95 	$100.00 	Formula	Formula	Formula
111 	1,000 	60 	52.00 	Formula	Formula	Formula
112 	500 	80 	76.00 	Formula	Formula	Formula
113 	200 	170 	180.00 	Formula	Formula	Formula
120 	400 	205 	208.00 	Formula	Formula	Formula
121 	1,600 	16 	14.00 	Formula	Formula	Formula
122 	300 	240 	$235.00 	Formula	Formula	Formula
Totals				Formula	Formula	Formula
						
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, 2013, by the lower-of-cost-or-market method, applying
      this method directly to each item."						
						
						
The valuation of inventory as of December 31, 2013, by the lower of cost or market method, as applied directly to each item is:					Value	
						
						
"(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total
     of the inventory."						
						
						
The valuation of inventory as of December 31, 2013, by the lower of cost or market method, as applied to total inventory is:					Value