ACCT 3110 Ch 9 Quiz Spring 2016 Name ____SOLUTION_____________________

Tiger Track Company uses lower of cost or market on an individual item basis.
Item Quantity Cost/unit Replacement Selling Selling Normal
Cost Price Cost Profit

1510 700 2.25 2.00 3.25 .80 .60

1522 700 3.00 2.70 3.80 .40 .70
1573 3,000 1.80 1.60 2.50 .75 .50
1626 1,000 4.70 5.20 6.00 .50 1.00

Determine the company inventory if valuation is done on an individual item basis. _________________.

Determine the company inventory.

Ceiling = selling price selling cost

Floor = Ceiling normal profit

Ceiling Floor Market Lower of cost or market

1510 2.45 1.85 2.00 2.00 X 700 = 1,400

1522 3.40 2.70 2.70 2.70 X 700 = 1,890
1573 1.75 1.25 1.75 1.75 X 3,000 = 5,250
1626 5.50 4.50 5.20 4.70 X 1,000 = 4,700

Total $13,240