Chap009 - Student Name Instructor Class McGraw-Hill/Irwin...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Instructor Class: McGraw-Hill/Irwin Problem 09-01 THE DECKER COMPANY Inventory Requirement 1: (1) (2) (3) (4) (5) Ceiling Floor Designated Market Value Inventory [Middle Value value of [Lower of Product Units RC NRV NRV-NP (1), (2) & (3)] Cost (4) and (5)] A 1,000 $ 12,000 $ 13,600 $ 7,200 $ 12,000 $ 10,000 $ 10,000 B 800 8,800 12,240 6,480 8,800 12,000 8,800 C 600 1,200 4,080 2,160 2,160 1,800 1,800 D 200 800 1,020 540 800 1,400 800 E 600 7,200 6,630 3,510 6,630 8,400 6,630 Totals $ 30,390 $ 33,600 $ 28,030 Correct! Correct! Correct! Inventory carrying value: $ 28,030 «- Correct! Requirement 2: Inventory carrying value: $ 30,390 Loss from inventory write-down: $ 3,210 «- Correct!
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Given Data P09-01: THE DECKER COMPANY Unit Unit Unit Selling Product Quantity Cost RC 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 Sales commission 15% Normal profit as percentage of selling price 40%
Image of page 2
Student Name: Instructor Class: McGraw-Hill/Irwin Problem 09-05 Requirement 1: ALQUIST COMPANY Conventional Retail Method Cost Retail Beginning inventory $ 100,000 $ 150,000 Plus: Purchases 1,387,500 2,000,000 Freight-in 10,000 Plus: Net markups 300,000 2,450,000 Cost-to-retail percentage: 61.12% Less: Net markdowns (150,000) Goods available for sale 1,497,500 2,300,000 Less: Normal shrinkage (15,000) Sales: Sales to customers 1,750,000 Sales to employees 250,000 (2,000,000) Employee discounts (62,500) Estimated ending inventory at retail 222,500 «- Correct! Estimated ending inventory at cost (135,992) «- Correct! Estimated cost of goods sold $ 1,361,508 «- Correct! Requirement 2: ALQUIST COMPANY LIFO Retail Method Cost Retail Beginning inventory $ 100,000 $ 150,000 Plus: Purchases 1,387,500 2,000,000 Freight-in 10,000 Plus: Net markups 300,000 Less: Net markdowns (150,000) Goods available for sale (excluding beg. inv.)
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern