1.) Given the acquisition cost of product Z is $36, the net realizable value for product Z is $32, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $28, what is the proper per unit inventory price for product Z using LCNRV?

2.) Techno uses the LIFO cost method. Given the acquisition cost of product Z is $36, the net realizable value for product Z is $32, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $28, what is the proper per unit inventory price for product Z using LCM?

Use for 3-4

3.) At 12/31/18, the end of Leo Company's first year of business, inventory was $4,800 and $3,700 at cost and at market, respectively. Prepare the entry at 12/31/18 necessary to implement the LCNRV procedure assuming Leo uses a contra account for its balance sheet.

4.) At 12/31/19 inventory was $3,250 and $3,000 at cost and at market, respectively. Prepare the entry at 12/31/19 necessary to implement the LCNRV procedure assuming Leo uses a contra account for its balance sheet.

Use for 5-6

On August 31, a hurricane destroyed a retail location of Chelsea Stores including the entire inventory on hand at the location. The inventory on hand as of June 30 totaled $480,000. Since June 30 until the time of the hurricane, the company made purchases of $250,000 and had sales of $575,000.

5.) If sales are made at 40% above cost, what is the approximate value of the inventory that was destroyed?

6.) Compute the cost of goods destroyed, assuming that the gross profit is 40% of sales.

7.) During the prior fiscal year, Lindon Inc. signed a long-term noncancellable purchase commitment with its primary supplier to purchase $3.3 million of raw materials. Lindon paid the $3.3 million to acquire the raw materials when the raw materials were only worth $2.8 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase?

Use for 8-10 ROUND ALL PERCENTAGES TO TWO DECIMALS EX: 43.23%

The following data concerning the retail inventory method are taken from the financial records of Blake Company.

Cost Retail

Beginning inventory $132,000 $ 220,000

Purchases 362,500 550,000

Freight-in 16,000

Net markups 45,000

Net markdowns 16,000

Sales 625,000

8.) What is the ending inventory at retail?

9.) If the ending inventory is to be valued at approximately the conventional retail inventory method, the calculation of the cost to retail ratio should be based on goods available for sale at: (a) cost(dollar amount) and (b) retail(dollar amount)

10.) What is the cost of ending inventory using the FIFO cost method?

11.) What is the cost of ending inventory using the LIFO Retail Method?

12.) Western Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2018:

Cost Retail

Inventory, 1/1/18 $ 125,750 $225,000

Net purchases 363,280 650,000

Net markups 55,000

Net markdowns 35,000

Net sales 530,000

What is the cost of Western's inventory at December 31, 2018?

13.) East Corporations computation of cost of goods sold is:

1/1/2018 inventory $ 50,000

12/31/2018 inventory 80,000

Cost of goods purchased 475,000

14. At a lump-sum cost of $69,000, Milan Company recently purchased the following items for resale:

Item No. of Items Purchased Resale Price Per Unit

M 4,000 $3.75

N 2,000 12.00

O 6,000 6.00

What is the approximate cost of each inventory item?