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Week 3 - Individual Assignments - David Trejo

# Week 3 - Individual Assignments - David Trejo -...

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E9-1 (Lower-of-Cost-or-Market) The inventory of 3T Company on December 3 following items. Instructions (a) Determine the inventory as of December 31, 2008, by the lower-of-cost-or-market method,           applying this method directly to each item. (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the tot           of the inventory. (a) (b) Part No. Part No. Total Market 110 \$54,000 110 \$60,000 111 52,000 111 52,000 112 38,000 112 38,000 113 34,000 113 36,000 120 82,000 120 83,200 121 320 121 320 122 70,500 122 70,500 330,820 340,020 Lower-of-cost- or-market

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31, 2008, consists of the tal
E9-12 (Gross Profit Method) Mark Price Company uses the gross profit method to estimate  for monthly reporting purposes. Presented below is information for the month of May. Instructions (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sal (b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cos Inventory, May 1 (cost) \$160,000 Purchases (gross) (cost) 640,000 Purchase discounts -12,000 Freight-in 30,000 Goods available (cost) 818,000 Sales (selling price) \$1,000,000 Sales returns (selling price) -70,000 Net sales (selling price) 930,000 Less gross profit (30% of \$930,000) 279,000 Sales (cost) 651,000 Approximate inventory, May 31 (cost) \$167,000

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