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

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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 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!
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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%
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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:
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Chap009 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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