+1-415-670-9189
info@expertsmind.com
What is the cost of one individual rocker
Course:- Accounting Basics
Reference No.:- EM131567712




Assignment Help
Assignment Help >> Accounting Basics

Q1. Diane makes one product. Diana adopted the dollar-value LIFO inventory method on 12-31-12. Her ending inventory at 12-31-12 was $55,000. Additional inventory data follows:

Year

Inventory at year-end prices

Price index (base year 2012)

Cost of goods manufacturing during the year

2013

$56,280

1.005

$150,000

2014

$54,540

1.010

$160,000

2015

$57,798

0.014

$155,000

2016

$58,986

1.017

$170,000

2017

$55,917

1.026

$145,000

2018

$57,680

1.030

$155,000

Compute the inventory at December 31, 2013, 2014, 2015, 2016, 2017 and 2018 AND the cost of goods sold for each year assuming Diane uses the dollar-value LIFO method for each year.

Q2. Hartley's accounting records included the following information:

Inventory, 01-01-13                                          $96,250

Purchases during 2013 (excluding shipping)         $1,450,180

Purchase returns during 2013                             $57,500

Freight-in on 2013 purchases                              $33,075

Sales during 2013                                              $2,467,500

Hartley completed a physical inventory on 12-31-13 and calculated an ending inventory of $106,000, at cost. In recent years, Hartley's gross profit equaled 75% of Hartley's cost. Hartley suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

Q3. Gage's accounting records included the following information:

Inventory, 01-01-15                    $51,000

Purchases during 2015                 $705,000

Sales during 2015                        $1,662,000

Sales returns during 2015             $66,480

Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of $80,000, at retail selling price. In recent years, Gage's gross profit equaled 55% of Gage's selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

Q4. As of 12-31-15, Zena Company has four different inventory items on hand. Data on the four items follows:

Item

Quantity on hand

Unit cost

Expected selling price

Estimated disposal costs

C3Z22P3

450

$30.75

$40

$3

PQ27845

  15

$  9.50

$10

$2

ZT15577

235

$17.00

$29

$0

SF98888

  45

$43.00

$50

$9

Using the lower-of-cost-or-net realizable value approach applied on an individual-item basis, determine if Zena needs to make an entry to write her inventory down. If so, prepare the entry Zena should make

Q5. As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows:

Item

Quantity on hand

Unit cost (Acme uses LIFO)

Replacement cost

Normal profit

Expected selling price

Estimated disposal costs

A

57

$450

$625

$800

$1,500

$100

B

42

$200

$300

$230

$400

$25

C

15

$780

$800

$300

$1,000

$250

Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare the entry Acme should make

Q6. Andre paid $1,200,000 to purchase 15,000 chairs. The 15,000 chairs consisted of 4 different chair types/styles: 3,500 rockers that Andre expects to sell for $125 each, 5,000 gliders that Andre expects to sell for $200 each, 2,000 straight-back chairs that Andre expects to sell for $100 each, and 4,500 recliners that Andre expects to sell for $150. Using the relative sales value method:

  • What is the cost of one individual rocker? Round your answer to the nearest penny.
  • What will be Andre's gross profit amount if he sells 400 straight-back chairs? Round your answer to the nearest dollar.
  • If at the end of the accounting period, Andre has 3,000 recliners on hand, what will Andre report as his recliner ending inventory? Round your answer to the nearest dollar.

NOTE - when performing your calculations, make sure that you have allocated 100% of the $1,200,000 to the 4 different chair types. I suggest you use an excel spreadsheet (with formulas) to ensure you allocate the ENTIRE $1,200,000.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
In 1914, the Dodge Brothers began building their own automobiles after opening their machining shop in 1901 and contracting with such notable companies as Ford and Oldsmobil
How much should she invest in the money market account each year for the next 8 years to achieve her objective? How much would she need as a lump sum payment to compound to $2
Generate a business idea from everyday activities to start your own microbusiness. Explain what product/serviceyou will beproviding. What will the chief activities of this bus
The Production Division has no alternative use for the facilities used to manufacture the stuffing. What is SCC's the monthly operating income advantage (disadvantage) if the
Early in a period in which sales were increasing at a modest rate and plant expansion and startup costs were occurring at a rapid rate, a successful business would likely ex
Research and find financial statements for two companies of your choosing. Drawing on information from this module and the course, analyze the statements and write an essay
Prepare the ledger accounts for the two years ending 30.9.X6 and 30.9.X7 for each non-current asset together with related provision for depreciation and the sale of asset ac
Consider Jerry Jones other 30+ businesses in other locations. Chances are they do most of their computing during working hours, while football games are usually scheduled fo