SP9: Supplemental Retail Inventory Method problemABC periodic inventory system and the retail inventory method to estimate ending inventory and cost of goodssold at Year End. Use the following information to answer the questions below:CostRetailBeginning inventoryPurchasesPurchase returnsTransfer inNet markupsNet markdowns76SatesSales ReturnsSales Discount992003100001000052801600004800002000010000100008000440,00060005000Estimate Ending Inventory and COGS using the Conventional Retail MethodEstimate Ending Inventory and COGS using the LIFO Retail MethodEstimate Ending Inventory and COGS using the DV LIFO Retail Method - Assume that retail prices increased 10%(from 1.00 to 1.1) from base year (previous year end) to current year end

Name: SP9: Supplemental Retail Inventory Method problemABC periodic invento
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: SP9: Supplemental Retail Inventory Method problemABC periodic inventory system and the retail inventory method to estimate ending inventory and cost of goodssold at Year End. Use the following information to answer the questions below:CostRetailBegi

costretail valuebeginning inventory99200160000add:net purchases300000460000add:transfer…

Business

Accounting

SP9: Supplemental Retail Inventory Method problem ABC periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold at Year End. Use the following information to answer the questions below: Cost Retail Beginning inventory Purchases Purchase returns Transfer in Net markups Net markdowns Sates Sales Returns Sales Discount 76 99200 310000 10000 5280 160000 480000 20000 10000 10000 8000 Estimate Ending Inventory and COGS using the LIFO Retail Method 440,000 6000 5000 Estimate Ending Inventory and COGS using the Conventional Retail Method Estimate Ending Inventory and COGS using the DV LIFO Retall Method - Assume that retail prices increased 10% (from 1.00 to 1.1) from base year (previous year end) to current year end

SP9: Supplemental Retail Inventory Method problem ABC periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold at Year End. Use the following information to answer the questions below: Cost Retail Beginning inventory Purchases Purchase returns Transfer in Net markups Net markdowns Sates Sales Returns Sales Discount 76 99200 310000 10000 5280 160000 480000 20000 10000 10000 8000 Estimate Ending Inventory and COGS using the LIFO Retail Method 440,000 6000 5000 Estimate Ending Inventory and COGS using the Conventional Retail Method Estimate Ending Inventory and COGS using the DV LIFO Retall Method - Assume that retail prices increased 10% (from 1.00 to 1.1) from base year (previous year end) to current year end

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

See similar textbooks

Similar questions

Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Retail Inventory Method The following information relates to the retail inventory method used by Jeffress Company: Required: 1. Compute the ending inventory by the retail inventory method using the following cost flow' assumptions (round the cost-to-retail ratio to 3 decimal places): a. FIFO b. average cost c. LIFO d. lower of cost or market (based on average cost) 2. Next Level What assumptions are necessary for the retail inventory method to produce accurate estimates of ending inventory?
Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
DETERMINING THE BEGINNING AND ENDING INVENTORY FROM A PARTIAL SPREADSHEET: PERIODIC INVENTORY SYSTEM From the following partial spreadsheet, indicate the dollar amount of beginning and ending merchandise inventory to be used to compute cost of goods sold.
( Appendix 6B) Inventory Costing Methods: Periodic LIFO Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
Inventory Write-Down Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Required: 1. What is the correct inventory value, assuming the LCNRV rule is applied to each item of inventory? 2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory? 3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items compared to the total of inventory.
Inventory Write-Down The following information is taken from Aden Companys records: Required: 1. What is the correct inventory value if the company applies the LCNRV rule to each of the following? a. individual items b. groups of items c. the inventory as a whole 2. Next Level Are there any conditions under which a company may ignore the decline in the value of inventory below its cost?