Inventories additional valuation issues 9 21 93 lf

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Inventories: Additional Valuation Issues9 - 2193.LF Corporation, a manufacturer of Mexican foods, contracted in 2010 to purchase 1,000pounds of a spice mixture at $5.00 per pound, delivery to be made in spring of 2011. By12/31/10, the price per pound of the spice mixture had dropped to $4.60 per pound. In2010, LF should recognizeaa loss of $5,000.b. a loss of $400.c. no gain or loss.d. a gain of $400.To download more slides, ebook, solutions and test bank, visit
94.The following information is available for October for Barton Company.Beginning inventory$50,000Net purchases150,000Net sales300,000Percentage markup on cost66.67%A fire destroyed Barton’s October 31 inventory, leaving undamaged inventory with a costof $3,000. Using the gross profit method, the estimated ending inventory destroyed by fireis
95.The following information is available for October for Norton Company.Beginning inventory$100,000Net purchases300,000Net sales600,000Percentage markup on cost66.67%A fire destroyed Norton’s October 31 inventory, leaving undamaged inventory with a costof $6,000. Using the gross profit method, the estimated ending inventory destroyed by fireis
Use the following information for questions 96 and 97.Miles Company, a wholesaler, budgeted the following sales for the indicated months:JuneJulyAugustSales on account$1,800,000$1,840,000$1,900,000Cash sales180,000200,000260,000Total sales$1,980,000$2,040,000$2,160,000All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at thebeginning of each month are at 30% of that month's projected cost of goods sold.
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Test Bank for Intermediate Accounting, Thirteenth Edition9 - 2296.The cost of goods sold for the month of June is anticipated to be
97.Merchandise purchases for July are anticipated to bea. $1,632,000.b. $2,076,000.c. $1,700,000.d. $1,730,000.
98.Reyes Company had a gross profit of $360,000, total purchases of $420,000, and anending inventory of $240,000 in itsfirstyear of operations as a retailer. Reyes’s sales inits first year must have been
99.A markup of 40% on cost is equivalent to what markup on selling price?
100.Kesler, Inc. estimates the cost of its physical inventory at March 31 for use in an interimfinancial statement. The rate of markup on cost is 25%. The following account balancesare available:Inventory, March 1$220,000Purchases172,000Purchase returns8,000Sales during March300,000The estimate of the cost of inventory at March 31 would be

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Term
Fall
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N/A
Tags
net realizable value, retail inventory
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Applied Calculus
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Chapter 2 / Exercise 66
Applied Calculus
Berresford/Rockett
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