lilly company malone company peterson company hayek boutique malone johnson 497667

1. Lilly Company has the following info at December 31st, 2010:

COST RETAIL

Beginning inventory $20,500 $28,750

Purchases 12,500 18,750

Transportation in 250

Sales 26,250

Using the retail inventory method compute the estimated cost of the ending inventory at year-end.

2. Malone Company determines its inventory at lower of cost of market at 12/31/2011.

At year-end, equipment with a cost of $650,000 has a replacement cost of $550,000, a net realizable value (NRV) of $585,000 and NRV less normal profit margin of $565,000. The company would determine the LCM value of the ending inventory at:

3. Peterson Company had the following records for product BA-101:

UNITS UNIT COST

Jan 1 Beg Inventory 600 $8

Purchases:

Jan 5 1,100 $9

Jan 25 1,300 $10

Feb16 800 $11

March 26 600 $12

A physical inventory on March 31^st showed 1,500 units on hand.

a. Compute ending inventory at March 31^st using FIFO

b. Calculate Cost of goods sold using FIFO.

4. The records of Hayek Boutique have the following data:

COST RETAIL

Beg. Inventory $200,000 $280,000

Purchases $1,425,000 $2,140,000

Markups $80,000

Markdowns $15,000

Sales $2,250,000

Compute the ending inventory using the retail inventory method.

5. Malone has the following information of the ending inventory at cost and lower of cost or market at 12/31/10, 12/31/11, and 12/31/12:

12/31/10 $650,000 $680,000

12/31/11 $780,000 $712,000

12/31/12 $905,000 $830,000

a. What is the value of the inventory at each of these 3 year-end dates?

b. Record the journal entry to bring the inventory to the proper value at each year-end if needed.

6. Johnson has the following information for the month of June:

June 1 Beg. Bal. of 300 units at $10 each

June 10^th Sold 200 units at $24 per unit

June 11^th Purchased 800 units at $11 each

June 15 Sold 500 units at $25 each

June 20 Purchased 500 units at $13 each

June 27^th Sold 250 units at $27 each

Using the LIFO perpetual method prepare a schedule and calculate

a. Ending inventory at June 30^th

b. Value of cost of goods sold.

c. What is the gross profit at June 30^th?