Week 3 - Individual Assignments - David Trejo

Week 3 - Individual Assignments - David Trejo - E9-1

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Unformatted text preview: E9-1 (Lower-of-Cost-or-Market) The inventory of 3T Company on December 3following 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 Market110$54,000 110$60,000 11152,00011152,00011238,00011238,00011334,00011336,00012082,00012083,20012132012132012270,50012270,500330,820340,020Lower-of-cost-or-market31, 2008, consists of thetalE9-12 (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 cosInventory, May 1 (cost)$160,000 Purchases (gross) (cost)640,000Purchase discounts-12,000Freight-in30,000Goods available (cost)818,000Sales (selling price)$1,000,000 Sales returns (selling price)-70,000Net sales (selling price)930,000Less gross profit (30% of $930,000) 279,000Sales (cost)651,000Approximate inventory, May 31 (cost)$167,000 inventory...
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This note was uploaded on 01/12/2011 for the course ACCTING Acc423 taught by Professor Rob during the Spring '10 term at DeVry Long Beach.

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Week 3 - Individual Assignments - David Trejo - E9-1

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