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. Exercise 9-12Exercise 9-16 Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Exercise 9-19Exercise 9-21 The financial statements of ConAgra Foods, Inc.s 2012 annual report disclose the following information. | Problem 9-4 Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. | Inventory (beginning) | $85,300 | Sales revenue | $420,100 | | Purchases | 363,600 | Sales returns | 21,300 | | Purchase returns | 34,000 | Gross profit % based on net selling price | 33 | % | Merchandise with a selling price of $39,300remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,790. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) (in millions) | May 27, 2012 | May 29, 2011 | May 30, 2010 | | Inventories | $1,870 | $1,803 | $1,598 | | Fiscal Year | | 2012 | 2011 | | Net sales | $13,263 | $12,303 | | Cost of goods sold | 10,436 | 9,390 | | Net income | 474 | 818 | Compute ConAgras (a) inventory turnover and (b) the average days to sell inventory for 2012 and 2011. (Round times to 1 decimal place, e.g. 7.6 and all other answers to 0 decimal places, e.g. 65.) | 2012 | 2011 | | Inventory turnover: | | times | | times | | Average days to sell inventory: | | days | | Presented below is information related to Ricky Henderson Company. | Cost | Retail | | Beginning inventory | $54,960 | $294,400 | | Purchases | 1,458,000 | 2,148,000 | | Markups | 95,700 | | Markup cancellations | 16,500 | | Markdowns | 40,300 | | Markdown cancellations | 7,000 | | Sales revenue | 2,329,000 | Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) | Ending inventory using conventional retail inventory method | $ |
Lumber | 25% | | Millwork | 30% | | Hardware and fittings | 40% | On August 18, a fire destroyed the office, lumber shed, and a considerable portion of the lumber stacked in the yard. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction. | Lumber | Millwork | Hardware | | Inventory, Jan. 1, 2014 | $272,500 | $93,940 | $52,500 | | Purchases to Aug. 18, 2014 | 1,520,800 | 380,900 | 161,000 | | Sales to Aug. 18, 2014 | 2,067,300 | 561,730 | 263,340 | Submit your estimate of the inventory amounts immediately preceding the fire. | Lumber | Millwork | Hardware | | Inventory | $ | $ | Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. | Inventory, May 1 | $179,300 | | Purchases (gross) | 648,000 | | Freight-in | 31,700 | | Sales revenue | 1,035,700 | | Sales returns | 83,400 | | Purchase discounts | 12,500 | (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. | The estimated inventory at May 31 | $ |
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.) | The estimated inventory at May 31 | $ |
Group | No. of Lots | Price per Lot | | 1 | 9 | $3,450 | | 2 | 15 | 4,600 | | 3 | 19 | 2,300 | Operating expenses for the year allocated to this project total $16,600. Lots unsold at the year-end were as follows. | Group 1 | 4lots | | Group 2 | 7lots | | Group 3 | 2lots | At the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234%. Round cost per lot and final answer to 0 decimal places, e.g. 5,845.) Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. | Item No. | Quantity | Cost per Unit | Cost to Replace | Estimated Selling Price | Cost of Completion and Disposal | Normal Profit | | 1320 | 1,600 | $3.90 | $3.66 | $5.49 | $0.43 | $1.53 | | 1333 | 1,300 | 3.29 | 2.81 | 4.27 | 0.61 | 0.61 | | 1426 | 1,200 | 5.49 | 4.51 | 6.10 | 0.49 | 1.22 | | 1437 | 1,400 | 4.39 | 3.78 | 3.90 | 0.31 | 1.10 | | 1510 | 1,100 | 2.75 | 2.44 | 3.97 | 0.98 | 0.73 | | 1522 | 900 | 3.66 | 3.29 | 4.64 | 0.49 | 0.61 | | 1573 | 3,400 | 2.20 | 1.95 | 3.05 | 0.92 | 0.61 | | 1626 | 1,400 | 5.73 | 6.34 | 7.32 | 0.61 | 1.22 | From the information above, determine the amount of Bolton Company inventory. | The amount of Bolton Companys inventory | $ |
Ending inventory using the conventional retail method | $ |
