Metlock Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March.

			Units		Price per Unit					Total
Residential Pumps
	Inventory at Feb. 28:		220			$	440			$	96,800
Purchases:
	March 10		550			$	495			$	272,250
	March 20		440			$	523			$	230,120
	March 30		330			$	550			$	181,500
Sales:
	March 15		550			$	594			$	326,700
	March 25		440			$	627			$	275,880
	Inventory at March 31:		550
Commercial Pumps
	Inventory at Feb. 28:		660			$	880			$	580,800
Purchases:
	March 3		660			$	990			$	653,400
	March 12		330			$	1,045			$	344,850
	March 21		550			$	1,100			$	605,000
Sales:
	March 18		990			$	1,188			$	1,176,120
	March 29		660			$	1,254			$	827,640
	Inventory at March 31:		550

In addition to the above information, due to a downturn in the economy that has hit Metlock’s commercial customers especially hard, Metlock expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Metlock has developed the following additional information.

		Commercial Pumps		Residential Pumps
Net realizable value (per unit)		$990		$638

The normal profit margin is 16.67% of cost. Metlock uses the FIFO accounting method.

(a)

Determine the dollar amount that Metlock should report on its March 31 balance sheet for inventory. Assume Metlock applies lower-of-cost-or-net realizable value at the individual product level.

Total amount of inventory

$

Answer rating: 100% (QA)

Inventory of 550 units of Residential Pumps will comprise of 330 units purchased on March 3... View the full answer