Be9-4

Determine the book value of SLR's inventory assuming that the lower of cost and net realizable value rule is applied to individual products. What is the before-tax income effect of the adjustment? 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 company's periodic inventory system: beginning inventory, $220.000; purchases and net sales from the beginning of the year through February 26. $400,000 and $600,000. respectively; gross profit ratio. 30%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method. Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following information is available from the records of the company's periodic inventory system: beginning inventory. $150,000; purchases and net sales from the beginning of the year through the date of the flood, $450,000 and $700,000. respectively. What is the company's gross profit ratio? Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory an cost of goods sold. The following data are available for the quarter ending September 30.2016