Problem 6-4A (Algo) Report inventory using lower of cost and net realizable value (LO6-6)
A local Chevrolet dealership carries the following types of vehicles:
Inventory Items Quantity Unit Cost Unit NRV
Vans 3 $22,000 $20,000
Trucks 6 $17,000 $16,000
2-door sedans 2 $12,000 $14,000
4-door sedans 7 $16,000 $19,000
Sports cars 3 $32,000 $35,000
SUVs 5 $28,000 $23,000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.
Required:
Compute the total cost of the entire inventory.
Final answer:
The total cost of the entire inventory is $540,000.
Explanation:
To compute the total cost of the entire inventory, we need to multiply the quantity of each type of vehicle by its unit cost and then sum up the results.
For vans: 3 * $22,000 = $66,000
For trucks: 6 * $17,000 = $102,000
For 2-door sedans: 2 * $12,000 = $24,000
For 4-door sedans: 7 * $16,000 = $112,000
For sports cars: 3 * $32,000 = $96,000
For SUVs: 5 * $28,000 = $140,000
Summing up the costs, the total cost of the entire inventory is $540,000.
Bagaimana cara menghitung total cost dari entire inventory? Untuk menghitung total cost dari entire inventory, Anda perlu mengalikan jumlah (quantity) dari setiap jenis kendaraan dengan harga satuan (unit cost) nya, kemudian menjumlahkan hasilnya.