Help with Chapter 9 Homework

# Help with Chapter 9 Homework - Exercise91(1 Product Cost(2...

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Help with Chapter 9 Homework Exercise 9–1 (1) (2) Product Cost NRV (*) Per Unit Inventory Value [Lower of (1) and (2)] 1 $20$34 $20 2 90 80 80 3 50 60 50 * Selling price less costs to sell. 1 This preview has intentionally blurred sections. Sign up to view the full version. View Full Document Exercise 9–2 Requirement 1 (1) (2) Product Cost NRV Inventory Value [Lower of (1) and (2)] 101$120,000 $100,000$100,000 102 90,000 110,000 90,000 103 60,000 50,000 50,000 104 30 ,000 50,000 30 ,000 $300 ,000$270 ,000 The inventory value is $270,000 . Requirement 2 Loss from write-down of inventory:$300,000 – 270,000 = $30,000 2 Exercise 9–3 (1) (2) Product Cost NRV (*) Per Unit Inventory Value [Lower of (1) and (2)] A$40 $52**$40 B 90 86 86 C 40 70 40 D 100 112 100 E 20 26 20 * Selling price less costs to sell. Costs to sell = 10% of selling price + 5% of cost. **$60 – (10% x$60) – (5% x $40) =$52 3

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Exercise 9–5 Beginning inventory (from records) $140,000 Plus: Net purchases (from records) 370 ,000 Cost of goods available for sale 510,000 Less: Cost of goods sold: Net sales$550,000 Less: Estimated gross profit of 25% (137 ,500 ) Estimated cost of goods sold (412 ,500 ) Estimated cost of inventory destroyed $97 ,500 Exercise 9–7 Merchandise inventory, January 1, 2016$1,900,000 Purchases 5,800,000 Freight-in 400 ,000 Cost of goods available for sale 8,100,000 Less: Cost of goods sold: Sales $8,200,000 Less: Estimated gross profit of 20% (1 ,640,000 ) (6,560,000 ) Estimated loss from fire$1 ,540,000 4
Exercise 9–8 Requirement 1 Beginning inventory (from records) $58,500 Plus: Net purchases ($110,000 – 4,000) 106,000 Freight-in (from records) 3 ,000 Cost of goods available for sale 167,500 Less: Cost of goods sold: Net sales ($180,000 – 5,000)$175,000 Less: Estimated gross profit of 40% (70 ,000 ) Estimated cost of goods sold (105 ,000 ) Estimated cost of inventory before theft 62,500 Less: Stolen inventory (8 ,000 ) Estimated ending inventory $54 ,500 Requirement 2 Beginning inventory (from records)$ 58,500 Plus: Net purchases ($110,000 – 4,000) 106,000 Freight-in (from records) 3 ,000 Cost of goods available for sale 167,500 Less: Cost of goods sold: Net sales ($180,000 – 5,000) $175,000 Less: Estimated gross profit of 50% * (87 ,500 ) Estimated cost of goods sold (87 ,500 ) Estimated cost of inventory before theft 80,000 Less: Stolen inventory (8 ,000 ) Estimated ending inventory$ 72 ,000 * Gross profit as a % of cost (1 + Gross profit as a % of cost) = Gross profit as a % of sales. 100% 200% = 50% 5

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Exercise 9–10 Cost Retail Beginning inventory $35,000$50,000 Plus: Net purchases 19,120 31,600 Net markups 1,200 Less: Net markdowns ______ (800 ) Goods available for sale 54,120 82,000 $54,120 Cost-to-retail percentage: = 66%$82,000 Less: Net sales (32 ,000 ) Estimated ending inventory at retail $50 ,000 Estimated ending inventory at cost (66% x$50,000) (33 ,000 ) Estimated cost of goods sold $21 ,120 6 Exercise 9–11 Cost Retail Beginning inventory$190,000 $280,000 Plus: Purchases 600,000 840,000 Freight-in 8,000 Net markups 20 ,000 1,140,000$798,000 Cost-to-retail percentage: = 70% $1,140,000 Less: Net markdowns _______ (4 ,000 ) Goods available for sale 798 ,000 1,136,000 Less: Net sales (800 ,000 ) Estimated ending inventory at retail$ 336 ,000 Estimated ending inventory at cost (70% x $336,000)$235 ,200 7

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Exercise 9–12 Cost Retail
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