On july 8 a fire destroyed the entire merchandise

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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale CorpoSales, January 1 through July 8$685,000Inventory, January 1133,000Purchases, January 1 through July 8653,000Gross profit ratio24 %What is the estimated inventory on July 8 immediately prior to the fire?ExplanationIn applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at:NRV = $119,000 – ($119,000 × 10%) = $107,100NRV = $61,000 – ($61,000 × 10%) = $54,900
Beginning inventoryPlus: Net purchasesGoods available for saleLess:Cost of goods sold:Net sales$685,000Less:Estimated gross profit(164,400)Estimated cost of goods soldEstimated ending inventoryInv Jan1450,000 Goods for saleSales(1,190,000)COGSPurchases905,000 Est GPGross Profit0.35 Est G PEst COGSEst end InvCalifornia Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 201data: Inventory January 1, 2018, $420,000; sales and purchases from January 1, 2018, to May 1, 20estimated inventory
20.813.45.33.1ExplanationCost$20.8Initial markup13.4Markdown(5.30)Markdown cancellation3.1Selling price$32CostRetailBeginning inventory$84,000124,000Net purchases400,960580,000Net markups36,000Net markdowns56,000Net sales519,000Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cosfor a sale by $5.30 and then had a markdown cancellation of $3.10. The Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.$Current period cost-to-retail percentage is:
Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started businessCostRetailBeginning inventory$82,000$113,000Net purchases347,410510,000Net markups29,000Net markdowns49,000Net sales456,000Estimated ending inventory at retail is:CostRetailBeginning inventory$78,000$116,000Net purchases370,240540,000Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.
Net markups32,000Net markdowns52,000Net sales483,000370,240520,000448,240636,000Less sales-483,000Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright mad40 units at $10070 units at $80170 units at $60Goods av for sale (excl inv)Goods av for sale (Inc inv)Estimated ending inventory at cost is:(Do not round intermediate calculations):
Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIF1060FIFO60010100LIFO1000
ertaining to that inventory is as follows:the valuation.RehabRehabEquipmentSupplies137$349$1042641219125330d be valued at:RehabRehabEquipmentSupplies140$344$1382661634124e valued at:
RehabRehabEquipmentSupplies126$323$1032821027296be valued at:RehabRehabEquipmentSupplies130$345$1042701224321valued at:ApparelSupplies151,000$106,000$139,00074,200128,00094,20010 %10 %
BootsApparel145,000$117,000$147,00076,050119,00096,05010 %10 %14500130,500BootsApparel168,000$119,000$142,00083,300113,000113,00010 %10 %
11900107,100ApparelSupplies155,000$106,000$140,00074,200129,00094,20010 %10 %at:oration. The following information is available:
$133,000653,000786,000(520,600)$265,400On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale

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