Case P9-2.docx

Problem 9-2 1.

inventory by product type Tools: Hammers Saws Screwdrivers Paint product: 1-gallon cans Paint brushes

inventory by product type Tools: Hammers Saws Screwdrivers TOTAL TOOLS Paint product: 1-gallon cans Paint brushes TOTAL PAINT TOTAL

2.

Per Unit Cost

Quantity

Designated Market

NRV

100 200 300

$ $ $

5.0 10.0 2.0

$ $ $

5.5 9.0 2.6

$ $ $

500 2,000 600

$ $ $

550 1,800 780

500 100

$ $

6.0 4.0

$ $

5.0 4.5

$ $

3,000 400

$ $

2,500 450

Cost

lower-of-cost-or-market by product by total by individual type inventory

NRV

$ $ $ $

500 2,000 600 3,100

$ $ $ $

550 1,800 780 3,130

$ $ $

$ $ $ $

3,000 400 3,400 6,500

$ $ $ $

2,500 450 2,950 6,080

$ $

Individual Product Product Type Total Inventory

COST

$ $ $

700 450 420

$

500 1,800 600 $

3,100

$ $

2,950 6,050

2,500 400 5,800

$

6,080

(6500-5800) (6500-6050) (6500-6080)

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