Data on the physical inventory of Katus Products Co. as of December 31 follow:

Data on the physical inventory of Katus Products Co. as of December 31 follow:

Market Value per Unit (Net Realizable Value) Inventory Item Inventory  Quantity A54 37 $ 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744

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 A54 30 $ 60 40 $ 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740

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 Inventory    Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Total Cost Market LCM A54 37   30  60 $56 $1,800 $1,680 7 58    56 406 392 $2,206 $2,072 $2,072

Answer:

Market

Value per

Cost Unit (Net

Inventory per Realizable

Item Unit Value) Cost Market LCM

A54 37 30 $ 60 $ 56 $ 1,800 $ 1,680

7 58 56 406 392

2,206 2,072 $ 2,072

C77 24 174 178 4,176 4,272 4,176

F66 30 20 130 132 2,600 2,640

10 128 132 1,280 1,320

3,880 3,960 3,880

H83 21 6 547 545 3,282 3,270

15 540 545 8,100 8,175

11,382 11,445 11,382

K12 375 6 5 2,250 1,875 1,875

Q58 90 75 25 18 1,875 1,350

15 26 18 390 270

2,265 1,620 1,620

S36 8 5 256 235 1,280 1,175

3 260 235 780 705

2,060 1,880 1,880

V97 140 100 17 20 1,700 2,000

40 16 20 640 800

2,340 2,800 2,340

Y88 17 10 750 744 7,500 7,440

7 740 744 5,180 5,208

12,680 12,648 12,648

Total$43,239 $42,572 $41,873