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17 download_doc-17.php - A311 (4/23/2009) BE9-3 Given...

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A311 (4/23/2009) BE9-3 Given… INV end = INV beg + Purch – COGS – INV Impair 286 cost 214 cost ? ? ? 269 “mkt” 214 “mkt” If unadjusted GL balance of inventories at 12/31/08 is $286,000, determine proper adjusting entry (if any): INV…………………………….(17,000) COGS…………………………………0 * INV Impair Loss………………. ..17,000 * By the definition of inventory impairment losses and the calculation $286,000 - $269,000 = $17,000 BE9-7 INV 4.30 = INV 1.1 + Purch – COGS – INV Impair ? 150 (LCM) 500 ? ? Inventory destroyed by fire on 4/30/08 INV 4.30 = 0 Sales Rev = $700 Est Gross Profit % = 31% * Find unknown values and determine proper adjusting entry for inventory at 4/30/08 * Gross Profit = Rev – COGS GP% = (Rev – COGS)/Rev 31% 700 700 COGS = Rev(1 – GP%) = 483 700 .31 INV Impair Loss = INV 1.1 + Purch – COGS – INV 4.30 = 167 150 500 483 0 650 Journal Entry:
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INV…………………. .(650,000) COGS…………………483,000
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This note was uploaded on 04/18/2011 for the course BUS 311 taught by Professor Palmer during the Winter '11 term at Indiana.

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17 download_doc-17.php - A311 (4/23/2009) BE9-3 Given...

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