Question
Brief Exercise 9-1Brief Exercise 9-8 Boyne Inc. had beginning inventory of $18,800at cost and $20,900at retail. Net purchases were $117,091at cost and $182,200at retail. Net
Brief Exercise 9-1Brief Exercise 9-8 Boyne Inc. had beginning inventory of $18,800at cost and $20,900at retail. Net purchases were $117,091at cost and $182,200at retail. Net markups were $12,600; net markdowns were $8,600; and sales revenue was $158,700. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Exercise 9-3Exercise 9-7 Phil Collins Realty Corporation purchased a tract of unimproved land for $51,000. This land was improved and subdivided into building lots at an additional cost of $28,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.
From the information above, determine the amount of Bolton Company inventory.
Ending inventory using the conventional retail method | $ |
Presented below is information related to Rembrandt Inc.s inventory.
(per unit) | Skis | Boots | Parkas |
Historical cost | $218.69 | $122.01 | $61.00 |
Selling price | 244.01 | 166.90 | 84.89 |
Cost to distribute | 21.87 | 9.21 | 2.88 |
Current replacement cost | 233.65 | 120.86 | 58.70 |
Normal profit margin | 36.83 | 33.38 | 24.46 |
Determine the following:
(a) the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.
Ceiling Limit | $ |
Floor Limit | $ |
(b) the cost amount that should be used in the lower-of-cost-or-market comparison of boots.
The cost amount | $ |
(c) the market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.
The market amount | $ |
Item | Cost | Replacement Cost | Net Realizable Value (NRV) | NRV less Normal Profit Margin |
Jokers | $2,394 | $2,454 | $2,514 | $1,915 |
Penguins | 5,985 | 6,105 | 5,925 | 4,908 |
Riddlers | 5,267 | 5,446 | 5,536 | 4,429 |
Scarecrows | 3,830 | 3,579 | 4,585 | 3,675 |
Jokers | $ |
Penguins | |
Riddlers | |
Scarecrows |
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