Hello sir/ ma'am

This is where i am getting started. find the questions below

1 Okafor Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

Product

Quantity

Unit

Cost

Unit

Replacement

Cost

Unit

Selling

Price

A

900

$

23

$

25

$

29

B

500

28

24

31

C

700

16

15

21

D

1,000

20

17

19

E

700

27

25

26

The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 35 percent of the selling price.

Required:

1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

2a.Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory.

2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

2 Amaobi Stop sells two product categories, furniture and accessories. Information pertaining to its 2018 year-end inventory is as follows:

Inventory,

by Product Category

Quantity

Per Unit

Cost

Market

Furniture:

Chairs

80

$

41

$

47

Desks

70

89

74

Tables

30

100

108

Accessories:

Rugs

80

76

64

Lamps

60

38

34

Required:

1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.

2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCM applications determine the amount of the loss.

3 Uchenna Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data:

($ in 000s)

Cost

Retail

Beginning inventory

$

87

$

145

Purchases

791

1,037

Freight-in on purchases

34

Purchase returns

1

3

Net markups

5

Net markdowns

9

Net sales

920

Required:

Assuming the price level increased from 1 at January 1 to 1.30 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.)

Estimated ending inventory at retail

Estimate ending inventory at cost

Estimate cost of goods sold

4 Uzodinma Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2017 balance sheet disclosed the following:

Current assets:

Receivables, net of allowance for uncollectible accounts of $44,000

$

502,000

During 2018, credit sales were $1,820,000, cash collections from customers $1,900,000, and $53,000 in accounts receivable were written off. In addition, $4,400 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Percentage of Year-End

Percent

Age Group

Receivables in Group

Uncollectible

0-60 days

65

%

4

%

61-90 days

15

10

91-120 days

15

30

Over 120 days

5

50

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.

2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 3% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

5 Chibuzo , Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system and the LIFO cost method for its grill inventory. Cast Iron's December 31, 2018, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition):

Units

Unit Cost

5,600

$

400

4,300

500

6,600

600

The replacement cost of the grills throughout 2019 was $700. Cast Iron sold 30,000 grills during 2019. The company's selling price is set at 200% of the current replacement cost.

Required:

1. & 2. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 under two different assumptions. First, that Cast Iron purchased 31,000 units and, second, that Cast Iron purchased 16,500 units during the year.

4. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 assuming that Cast Iron purchased 31,000 units (as per the first assumption) and 16,500 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method.

Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 assuming that Cast Iron purchased 31,000 units (as per the first assumption) and 16,500 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method.(Round "Gross profit ratio" answer to 1 decimal place (i.e., 0.123 needs to be entered as 12.3%.))

Thank you

Joy