W3 Individual Assignment

W3 Individual Assignment - E9-1 (Lower-of-Cost-or-Market)...

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E9-1 (Lower-of-Cost-or-Market) The inventory of 3T Company on December 31, 2008, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit Cost Market Lower 110 600 90 100 54,000 60,000 54,000 111 1,000 60 52 60,000 52,000 52,000 112 500 80 76 40,000 38,000 38,000 113 200 170 180 34,000 36,000 34,000 120 400 205 208 82,000 83,200 82,000 121 1,600 16 14 25,600 320 320 122 300 240 235 72,000 70,500 70,500 a Part No. 121 is obsolete and has a realizable value of $0.20 each as scra 367,600 340,020 330,820 Instructions (a) Determine the inventory as of December 31, 2008, by the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. $330,820 (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory. $340,020
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E9-12 (Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales 1,000,000 Sales returns 70,000 Purchase discounts 12,000 Instructions (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. Beginning inventory $160,000 Purchases 640,000 Freight-in 30,000 Purchase discounts (12,000) Goods available 818,000 Sales 1,000,000 Sales returns (70,000) Net sales 930,000 Less: Gross profit
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W3 Individual Assignment - E9-1 (Lower-of-Cost-or-Market)...

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