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

Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Instructions

Determine the inventory at cost and also at the lower of cost or market applied on an itemby- item basis, 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 LCM column. The first item on the inventory sheet has been completed as an example.

Transcribed Image Text:

Inventory Quantity Market Value per Unit (Net Realizable Value) Description A54 37 $ 56 C77 24 178 F66 30 132 H83 21 545 К12 375 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744