Data on the physical inventory of Ashwood Products Company as of December 31 follow:

Data on the physical inventory of Ashwood Products Company as of December 31 follow:

Inventory Item Inventory Quantity Market Value per Unit (Net Realizable Value) B12 38 $ 57 E41 18 180 G19 33 126 L88 18 550 N94 400 7 P24 90 18 R66 8 250 T33 140 20 Z16 15 752 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 Purchases Invoice Next-to-the-Last Purchases Invoice Inventory Item Quantity Purchased Unit Cost Quantity  Purchased Unit Cost B12 30 $ 60 30 $ 59 E41 35 178 20 180 G19 20 128 25 129 L88 10 563 10 560 N94 500 8 500 7 P24 80 22 50 21 R66 5 248 4 260 T33 100 21 100 19 Z16 10 750 9 745

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, proceed as follows:

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 Lower of C or M column. The first item on the inventory sheet has been completed as an example.

Inventory Sheet December 31 Inventory Item Inventory Quantity Cost per Unit  Market Value per Unit (Net Realizable Value) Total Cost Market Lower of C or M B12 38 30 $60 $57 $1,800 $1,710 8 59 57 472 456 $2,272 $2,166 $2,166

Answer:

Market

Value per

Cost Unit (Net

Inventory per Realizable

Item Unit Value) Cost Market LCM

B12 38 30 $ 60 $ 57 $ 1,800 $ 1,710

8 59 57 472 456

2,272 2,166 $ 2,166

E41 18 178 180 3,204 3,240 3,204

G19 33 20 128 126 2,560 2,520

13 129 126 1,677 1,638

4,237 4,158 4,158

L88 18 10 563 550 5,630 5,500

8 560 550 4,480 4,400

10,110 9,900 9,900

N94 400 8 7 3,200 2,800 2,800

P24 90 80 22 18 1,760 1,440

10 21 18 210 180

1,970 1,620 1,620

R66 8 5 248 250 1,240 1,250

3 260 250 780 750

2,020 2,000 2,000

T33 140 100 21 20 2,100 2,000

40 19 20 760 800

2,860 2,800 2,800

Z16 15 10 750 752 7,500 7,520

5 745 752 3,725 3,760

11,225 11,280 11,225

Total$41,098 $39,964 $39,873