CH_9_BOOK_PROBLEMS_SOLUTIONS

CH_9_BOOK_PROBLEMS_SOLUTIONS - EXERCISE 9-3(1520 minutes...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 9-3 (15–20 minutes) Item No. Cost per Unit Replacement Cost Net Realizable Value Net Real. Value Less Normal Profit Designated Market Value LCM Quantity Final Inventory Value 1320 $3.20 $3.00 $4.15* $2.90** $3.00 $3.00 1,200 $ 3,600 1333 2.70 2.30 2.90 2.40 2.40 2.40 900 2,160 1426 4.50 3.70 4.60 3.60 3.70 3.70 800 2,960 1437 3.60 3.10 2.75 1.85 2.75 2.75 1,000 2,750 1510 2.25 2.00 2.45 1.85 2.00 2.00 700 1,400 1522 3.00 2.70 3.50 3.00 3.00 3.00 500 1,500 1573 1.80 1.60 1.75 1.25 1.60 1.60 3,000 4,800 1626 4.70 5.20 5.50 4.50 5.20 4.70 1,000 4,700 *** $23,870 *$4.50 – $.35 = $4.15. **$4.15 – $1.25 = $2.90. ***Cost is used because it is lower than designated market value
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
EXERCISE 9-18 (20–25 minutes) (a) Cost Retail Beginning inventory ....................................... $ 58,000 $100,000 Purchases ........................................................ 122,000 200,000 Net markups .................................................... 20,000 Totals ...................................................... $180,000 320,000 Net markdowns ............................................... (30,000 ) Sales price of goods available ...................... 290,000 Deduct: Sales ................................................. 186,000 Ending inventory at retail .............................. $104,000 (b) 1. $180,000 ÷ $300,000 = 60% 2. $180,000 ÷ $270,000 = 66.67% 3. $180,000 ÷ $320,000 = 56.25% 4. $180,000 ÷ $290,000 = 62.07%
Image of page 2
EXERCISE 9-18 (Continued) (c) 1. Method 3. 2. Method 3. 3. Method 3. (d) 56.25% X $104,000 = $58,500 (e) $180,000 – $58,500 = $121,500 (f) $186,000 – $121,500 = $64,500 EXERCISE 9-19 (12–17 minutes) Cost Retail Beginning inventory .......................... $ 200,000 $ 280,000 Purchases ........................................... 1,425,000 2,140,000 Totals ......................................... 1,625,000 2,420,000 Add: Net markups Markups .................................... $95,000 Markup cancellations .............. _________ (15,000 ) 80,000 Totals ................................................... $1,625,000 2,500,000 Deduct: Net markdowns Markdowns ................................ 35,000 Markdown cancellations .......... (5,000 ) 30,000 Sales price of goods available .......... 2,470,000 Deduct: Sales ....................................
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern