Homework - Ch 9

Homework - Ch 9 - Exercise 9-1 (1) LCM unit application (2)...

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Exercise 9-1 LCM unit application (1) (2) (3) (4) (5) Product RC Ceiling NRV (*) Floor NRV-NP (**) Designated Market Value [Middle value Cost Per Unit Inventory Value [Lower of (4) and (5)] 1 $18 $ 34 $29 $29 $20 $20 2 85 80 50 80 90 80 3 40 60 48 48 50 48 * Selling price less disposal costs. ** NRV less normal profit margin
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Exercise 9-4 Gross profit method Beginning inventory (from records) $100,000 Plus: Net purchases (from records) 140,000 Cost of goods available for sale 240,000 Less: Cost of goods sold: Net sales $220,000 Less: Estimated gross profit of 35% (77,000 ) Estimated cost of goods sold (143,000 ) Estimated ending inventory 97,000 Less: Value of usable damaged goods (12,000 ) Estimated loss from fire $ 85,000 Exercise 9-7 retail AVE 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
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This note was uploaded on 09/27/2008 for the course BUS 1000 taught by Professor Professor during the Spring '08 term at Cal Poly.

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Homework - Ch 9 - Exercise 9-1 (1) LCM unit application (2)...

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