1. Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $31; selling price, $36; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?

Unit value: ?

2. SLR Corporation has 2,900 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:

	Product 1				Product 2
Cost		$	88			$	53
Selling price			165				55
Costs to sell			6				4

Determine the carrying value of SLRs inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment?

Determine the carrying value of SLRs inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products.

Product	Cost	NRV	Per Unit Inventory Value	Unit	Cost	Lower of Cost or NRV
1	?	?	?	2,900
2	?	?	?	2,900
			Cost
			Inventory value

3. On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the companys periodic inventory system: beginning inventory, $305,000; purchases and net sales from the beginning of the year through February 26, $570,000 and $770,000, respectively; gross profit ratio, 25%.

Estimate the cost of the inventory destroyed by the hurricane using the gross profit method.

Beginning inventory		?
Plus: Net purchases		?
Cost of goods available for sale
Less: Cost of goods sold:
Net sales	?
Less: Estimated gross profit	?
Estimated cost of goods sold
Estimated cost of inventory destroyed

4. Adams Corporation estimates that it lost $34,600 in inventory from a recent flood. The following information is available from the records of the companys periodic inventory system: beginning inventory, $160,000; purchases and net sales from the beginning of the year through the date of the flood, $400,000 and $710,000, respectively.

What is the companys gross profit ratio?

Gross profit ratio
Choose Numerator:		Choose Denominator:		Gross profit ratio
?	/	?	=	Gross profit ratio

5. Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year:

	Cost			Retail
Beginning inventory	$	225,000		$	410,000
Net purchases		645,000			1,185,000
Freight-in		16,600
Net markups					17,000
Net markdowns					5,000
Normal spoilage					2,000
Net sales					1,310,000

The company records sales to employees net of discounts. These discounts totaled $16,000 for the year. Estimate ending inventory and cost of goods sold using the conventional method.

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory	?	?
Plus: Purchases	?	?
Freight-in	?	?
Net markups	?	?
Goods available for sale
Less: Net markdowns	?	?
Goods available for sale
Cost-to-retail percentage			?
Less: Normal spoilage	?	?
Net sales	?	?
Employee discounts	?	?
Estimated ending inventory at retail		?
Estimated ending inventory at cost	?
Estimated cost of goods sold

6. On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:

	Cost			Retail
Beginning inventory	$	60,750		$	81,000
Net purchases		243,090			335,000
Net markups					7,000
Net markdowns					9,000
Net sales					312,000
Retail price index, end of year					1.04

Estimate ending inventory using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.)

	Cost	Retail	Cost-to-retail ratio
Beginning inventory	?	?
Plus: Net purchases	?	?
Net markups	?	?
Less: Net markdowns	?	?
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Base layer cost-to-retail percentage			?
2016 layer cost-to-retail percentage			?
Less: Net sales	?	?
Estimated ending inventory at current year retail prices		?
Estimated ending inventory at cost	?
Estimated cost of goods sold	?