ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 65

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 the fire;