acc422 wk 3 - Exercise E9-1 p 452...

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Exercise E9-1 Per Unit Part No. Quantity Cost Cost to Replace 110 600 90 100 111 1200 60 52 112 500 80 76 113 200 190 180 120 400 205 280 121 1600 16 14 122 250 240 235 Part Number 121 is obsolete and has a realizable value of $.25 each as scrap Instructions p. 452 E9-1 (Lower-of-Cost-or-Market) The inventory of 3T Company on December 31, 2008, consists of the following items. (a) Determine the inventory as of December 31, 2008, by the lower-of-cost-or-market method, applying this method directly to each item. (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.
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Exercise E9-12 p. 455 Inventory, May 1 $170,000 Purchases (gross) 650,000 Freight-in 30,000 Sales 1,000,000 Sales returns 85,000 Purchase discounts 18,000 Instructions E9-12 (Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. (b) Compute the estimated inventory at May 31, assuming that the gross profit is 35% of cost.
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ercise E9-19 p. 456 Cost Retail Beginning inventory $180,000 $290,000 Purchases 1,375,000 2,050,000 Markups 90,000 Markup cancellations 10,000 Markdowns 30,000 Markdown cancellations 8,000 Sales 2,000,000 Instructions Compute the inventory by the conventional retail inventory method.
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