ACC 304 All Assignments ACC 304 All Assignments | Page 98
1) Floyd Corporation has the following four items in its ending
inventory. Determine the final lower-of-cost-or-market inventory value
for each item.
2) Bell, Inc. buys 1,000 computer game CDs from a distributor who is
disconnecting those games. The purchase price for the lot is
$8,000.Bell will group the CDs into three price categories for resale, as
indicated bellow. Determine the cost per CD for each group, using the
relative sales value method.
3) Boyne Inc. had beginning inventory of $12,000 at cost and
$20,000 t retail. Net purchase were $12,000 at cost and $17,000 at
retail. Net markups were $10,000; net markdowns were $7,000; and
sales revenue was $147,000.compute ending inventory at cost using
the conventional retail method.
4) Marvin Gaye Company has been having difficulty obtaining key
raw materials for its manufacturing process. The Company therefore
signed a long-term non cancelable purchase commitment with its
largest supplier of this raw material on November 30, 2014,at an
agreed price of $400,0000. At December 31, 2014, the raw material had
declined in price to $365,000. What entry would you make on
December 31, 2014, to recognize these facts?
5) Tim Legler requires an estimate of the cost of goods loat by fire on
March 9. Merchandise on hand on January 1 was $38,000. Purchases
since January 1 were $72,000; freight-in $3,400; purchases returns and
allowances, $2,400. Sales are made at 33 1/3% above cost and totaled
$100,000 to March 9. Goods coasting $10,900 were left undamaged by