mgt131ahw5 - 12100 Loss due to market decline of inventory...

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E 9-3 Lower-of-cost-or Market Cost cost to estimated Cost of Item No. Quantity per unit replace selling price completion Normal profit 1320 1200 3.2 3 4.5 0.35 1.25 1333 900 2.7 2.3 3.4 0.5 0.5 1426 800 4.5 3.7 5 0.4 1 1437 1000 3.6 3.1 3.2 0.45 0.9 1510 700 2.25 2 3.25 0.8 0.6 1522 500 3 2.7 3.9 0.4 0.5 1573 3000 1.8 1.6 2.5 0.75 0.5 1626 1000 4.7 5.2 6 0.5 1 Designated Cost cost to NRV less Market Final Item No. Quantity per unit replace NRV normal profit Value inventory value 1320 1200 3.2 3 4.15 2.9 3 3600 1333 900 2.7 2.3 2.9 2.4 2.4 2160 1426 800 4.5 3.7 4.6 3.6 3.7 2960 1437 1000 3.6 3.1 2.75 1.85 2.75 2750 1510 700 2.25 2 2.45 1.85 2 1400 1522 500 3 2.7 3.5 3 3 1500 1573 3000 1.8 1.6 1.75 1.25 1.6 4800 1626 1000 4.7 5.2 5.5 4.5 5.2 4700 Total inventory $23,870.00 E 9-5 (a) February Sales 29000 COGS 16900 Gross profit
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Unformatted text preview: 12100 Loss due to market decline of inventory 2000 10100 March Sales 35000 COGS 22100 Gross profit 12900 Recovery of loss to reduce inv to mkt 1100 14000 April Sales 40000 COGS 29500 Gross profit 10500 Recovery of loss to reduce inv to mkt 700 11200 (b) 31-Jan Loss due to market inventory 500 allowance 500 28-Feb Loss due to market inventory 2000 allowance 2000 31-Mar Recovery of loss to reduce inv to mkt 1100 allowance 1100 30-Apr Recovery of loss to reduce inv to mkt 700 allowance 700...
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This note was uploaded on 10/21/2010 for the course ECON 1530 taught by Professor Ohly during the Spring '10 term at Dartmouth.

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mgt131ahw5 - 12100 Loss due to market decline of inventory...

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