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In-class work - Practice excersizes for final exam

# In-class work - Practice excersizes for final exam - Item...

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Item D E F G H I Estimated selling price 120 110 95 90 110 90 Cost 75 80 80 80 50 36 Replacement cost 120 72 70 30 70 30 Estimated selling expense 30 30 35 35 30 30 Normal profit 20 20 20 20 20 20 C: Cost 75 80 80 80 50 36 M: Replacement cost 120 72 70 30 70 30 90 80 60 55 80 60 =120-30 70 60 40 35 60 40 =90-20 90 72 60 35 80 40 LCM 75 72 60 35 50 36 75<90 Ceiling: NRV = Estimated selling price - Estimated selling expense Floor: NRV - Normal profit Designated market value: the middle value of RC, NRV, and NRV-Normal profit

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Group No. of lots Price per lot Total sales price Relative sales price Total costs Costs allocated to group Cost allocated per lot 1 9 3000 27000 0.22 18360 2040 =27000/125000 =0.216*85000 =18360/9 2 15 4000 60000 0.48 40800 2720 3 19 2000 38000 0.3 25840 1360 Total 125000 85000 Group Price per lot No.of lots sold Revenue Cost of goods sold Gross profit Operating expense Net income 1 3000 4 12000 8160 3840 =3000*4 =2040*4 =12000-8160 2 4000 8 32000 21760 10240 3 2000 17 34000 23120 10880 Total 78000 53040 24960 18200 6760 =24960-18200
Type Total sales price Relative sales price Total costs Lounge chairs 400 90 36,000 0.36 21,600 54 Armchairs 300 80 24,000 0.24 14,400 48 Straight Chairs 800 50 40,000 0.40 24,000 30 Total 100,000 60,000 Type Revenue Cost of goods sold Gross profit Ending inventories Lounge chairs 90 200 18,000 10,800 7,200 10,800 Armchairs 80 100 8,000 4,800 3,200 9,600 Straight Chairs 50 120 6,000 3,600 2,400 20,400 Total 32,000 19,200 12,800 No. of chairs Estimated selling price each Costs allocated to group Cost allocated each chair Estimated selling price each No.of chairs sold

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a Gross profit on sales (percentage) 0.25 Cost of goods sold 697500 =net sales * (1-Gross profit on sales) =(1000000-70000)*(1-0.25) Estimated ending inventory 120500 =beg inventory + net purchases - COGS =beg inventory + (purchases -purchase discounts + freight in) - COGS =160000+(640000-12000+30000)-697500 b Gross profit on sales 0.2 =markup on cost /(1+markup on cost) =0.25/(1+0.25) Cost of goods sold 744000 =net sales * (1-Gross profit on sales) =(1000000-70000)*(1-0.20) Estimated ending inventory 74000 =beg inventory + net purchases - COGS =beg inventory + (purchases -purchase discounts + freight in) - COGS =160000+(640000-12000+30000)-744000 =(sales - sales returns and allowances - sales discounts) * (1-Gross profit on sales) =(sales - sales returns and allowances - sales discounts) * (1-Gross profit on sales)
Gross profit on sales 0.3 Cost of goods sold =net sales * (1-Gross profit on sales) 438200 Estimated ending inventory =beg inventory + net purchases - COGS 151800 =beg inventory + (purchases -purchase discounts + freight in) - COGS Less: LCM of undamaged goods on hand 14700 Less: LCM of damaged goods on hand 5300 15000 5300 800 Estimated cost of inventories lost due to fire 131800 =(sales - sales returns and allowances - sales discounts) * (1-Gross profit on sales)

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2007 5.60 =36686/((6819+6291)/2) Average days to sell inventory 65 =365/5.6 Inventory turnover =COGS/Avg. Inventory
Item US GAAP IFRS Estimated selling price 9700 9900 Cost 10000 9400 Replacement cost 9300 9500 Estimated selling expense 300 300 Normal profit 0.12 0.12 C: Cost 10000 10000 9400 M: Replacement cost 9300 9400 9400 9600 8236 9300 LCM 9300 LCNRV 9400 Write down 700 600 reversal of prior write down N/A 200 Inventory 200 200 IFRS-2nd year Ceiling: NRV = Estimated selling price - Estimated selling expense Floor: NRV - Normal profit Designated market value: the middle value of RC, NRV, and NRV-Normal profit inventory write down expense

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Item Land Land improvement Building Other Accounts a 275000 notes payable b 275000 c 10000 d 7000 e 6000 f -1000 g 25000 h 250000 I 9000 j 4000 k 11000 l -5000 m 13000 n 19000 o 14000 p 3000
weighted-average accumulated expenditures date Amount

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In-class work - Practice excersizes for final exam - Item...

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