7 6819 10 Requirement 1: Inventory 11 (1) (2) (3) (4) (5) Ceiling Floor 12 13 14 15 Designated Market Value [Middle 16 17 Product Units RC NRV NRV-NP value of (1), (2) & (3)] Cost 8 0 1 ABCDE 1,000 $ $ 800 600 200 600 Inventory Value [Lower of (4) and (5)] Totals $ $ Try again! Try again! Try again Inventory Product Cost NRV Value ABCDE SSSSSS $ SSSSSS $ $ $ $ $ Try again! Try again Try again! Inventory carrying value: $ Fry again! Requirement 2: Inventory carrying value: Requirement 3: Try again No Entry Required. There is no loss from inventory write-down because the LCNRV is already recorded, at cost. 2345678 THE DECKER COMPANY Unit Unit Unit Selling Product Quantity Cost RC Price 9 10 11 12 13 ABCDE 1,000 $10 $12 $16 800 15 11 18 600 3 2 8 200 7 4 600 14 12 63 13 14 Sales commission 15 The normal profit for each product is 40 percent of the selling price. 16 17 15% #56988 Requirement 1: ALQUIST COMPANY Conventional Retail Method Cost Retail 10 11 Beginning inventory Plus: Purchases 12 Freight-in 13 Plus: Net markups 14 15 Cost-to-retail percentage: #DIV/0! 16 17 Less: Net markdowns 18 Goods available for sale 19 Less: 20 Normal shrinkage 21 Sales: 22 Sales to customers 23 Sales to employees 24 Employee discounts 25 Estimated ending inventory at retail Try again 26 Estimated ending inventory at cost #DIV/0! #DIVO! 27 Estimated cost of goods sold #DIV/0! #DIV/01 31 32 ALQUIST COMPANY LIFO Retail Method 33 34 35 36 Beginning inventory Plus: Purchases 37 Freight-in 38 Plus: Net markups 39 Less: Net markdowns 40 Goods available for sale (excluding beg. inv.) 41 Goods available for sale (including beg. inv.) 42 Cost to retail percentage: #DIV/0! 43 Less: 44 Normal shrinkage 45 Sales: 46 Sales to customers 47 Sales to employees 48 Employee discounts 49 Estimated ending inventory retail 50 Estimated ending inventory at cost 51 52 Beginning inventory 53 Current period's layer 54 Total $ 55 Estimated cost of goods sold Cost Retail Retail Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! ADIVINE Try again! Given Data P09-07: 2 B ALQUIST COMPANY 4 2021 operations information: Beginning inventory cost, 1/1/2021 $ 100,000 Beginning inventory retail value, 1/1/2021 $ 150,000 2021 Purchases cost O2021 Purchases retail value Incoming freight costs 2 Net additional. markups 3 Net markdowns 4 Shrinkage estimate 5 Employee discount 5 Employee sales 7 Customer sales 3 ) $ 1,387,500 $ 2,000,000 $ 10,000 $ $ $ 555 300,000 150,000 15,000 20% $ 250,000 $ 1,750,000