equity and debt financing 1
June 10, 2021
Tea – custom papers
June 10, 2021
Show all

Week 4 assignment 2 | Accounting homework help

E-9-19 Dollar-value LIFO retail
On January 1, 2011, the Brunswick Hat Company adopted the dollar-value LIFO retail method.  The following data are available for 2011:
 
                                                                                    Cost                               Retail
Beginning inventory                                          $     71,280                  $ 132,000          
Net purchases                                                          112.500                     255,000
Net markups                                                                                                     6,000
Net markdowns                                                                                              11,000
Net sales                                                                                                        232,000    
Retail price index, 12/31/11                                                                             1.04  
Required:
Calculate the estimated ending inventory and cost of goods sold for 2011   
E 9-21 Dollar value LIFO retail      
Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory.    Accounting records provide the following information:
                                                                                           Cost                         Retail  
Merchandise inventory, January 1, 2011                  $ 160,000             $ 250,000
Net purchases                                                                    350,200                510,000
Net markups                                                                                                         7,000
Net markdowns                                                                                                   2,000    
Net Sales                                                                                                           380,000  
Pertinent retail price indexes are as follows:
January 1, 2011                             1.00
December 31, 2011                   1.10
Required:    
Determine ending inventory and cost of goods sold.
 
P 9-1 Lower of cost or market  
Decker Company has five products in its inventory.  Information about the De3cember 31, 2011, inventory as follows:
Product                Quantity              Unit Cost                    Unit replacement      Unit Selling
                                                                                                       Cost                          Price                                           
   A                           1,000                   $ 10                                  $ 12                         $ 16
   B                              800                   15                                     11                             18
   C                              600                         3                                        2                               8
   D                              200                         7                                       4                               6   
   E                              600                       14                                     12                             13      
The selling cost for each product consists of a 15 percent sales commission.  The normal profit percentage for each product is 40 percent of the selling price.    
Required:
1.      Determine the balance sheet inventory carrying value at December 31, 2011, assuming the LCM rule is applied to individual products.
 
2.      Determine the balance sheet inventory carrying value at December 31, 2011, assuming the LCM rule is applied to the entire inventory.  Also assuming that Decker recognizes an inventory write-down as a separate income statement item, determine the amount of the loss.       

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service