[RosieJ74]

THERE ARE 8 QUESTIONS HERE>>>>PLEASE READ THEM ALL


A company sells four products. They have consistently experienced a profit margin of 20% of sales and expects this rate to hold for the future. This is the most recent year totals as of Dec 31

Product Original Cost Cost to Replace Est. Cost to Sell Exp Selling Prices
I $60 $70 $10 $100
II 70 90 20 120
III 80 60 10 60
IV 90 80 20 90

WHat is the reported inventory value at Dec 31 for Product IV?

A. 60 B. 70 C. 80 D. 90

I thought it was A, initially. I had somebody tell me it was C, but it was wrong.

Can somebody please help?

[RosieJ74]

At the end of Year 1, the company adopted the LIFO method.
The end of year inventory cost was calculated to be $20k

Year ENding Inv at Year end Prices Price Index
1 20K 1.00
2 38,400 1.20
3 45,500 1.30
4 35k 1.40
5 51k 1.50

Using the dollar-value LIFO method, what would be the value of the inventory at the end of the year?

A. 34k B. 37,400 C. 39,500 D. 51k

I thought it was to be B, but I changed it to A (which was wrong)...

[RosieJ74]

Monday, Inc had an A/P balance at Dec 31 of $1,800,000
Other transactions not considered beforehand are:
* Goods were in transit from a vendor to Monday
Invoice price 100k and were shipped 12/29, received 1/4 of following year
* Goods shipped to Monday FOB shipping point on 12/20 were lost in transit
Invoice price 50k and on 1/5 Monday filed a 50k claim against the carrier

So, on the Dec 31st Balance Sheet, Monday should report A/P of?

A. 1,950,000 B. 1,900,000 C. 1,850,000 D. 1,800,000

I thought it was C, but I was wrong... Now I am headed towards A.

Am I going in the right direction?

[RosieJ74]

Ok, the company records purchases net of discount.
They bought merchandise valued at $10k on credit terms 3/15, n/130
The entry to record a payment for half the purchase price w/in the discount period would be?

A/P for 4,850 and a credit to Cash for 4,850
A/P for 5k and a credit to Cash for 5k
A/P for 4,850 and to Interest Expense for 150, and a credit to Cash for 5k
A/P for 5k and to Interest Revenue for 150, and a credit to Cash for 5k


I answered it with The third answer, even though I knew it was wrong

I am trying to determine if it is the first or fourth... can somebody please advise me?

[RosieJ74]

Find the 1999's Cost of Goods Sold from the following Info:
Purchases $530k
Purchase Discounts $10k
Beginning Inventory $160k
Ending Inventory $215k
Freight-out $40k

A. $465,000
B. $475,000
C. $505,000
D. $585,000

I was stuck between A and C. I chose C and was wrong... can somebody tell me why... and what I should have chosen.

[RosieJ74]

Another company, a wholesale electronics distributor, prepared the following partial Income Statement

Gross Sales $600,400
Sales Discounts $400
Net Sales $600,000
Beginning Inv. $200,000
Net Purchases $300,000

A. $80,000
B. $120,000
C. $180,000
D. $500,000

I tried C, but was unsuccessful...
I also forgot to remember that the company's gross margin is 30% of net sales.

What is the correct ending inventory balance?

Now, I think it is B now.

[RosieJ74]

The Bumblebee Corp uses the lower-of-cost-or-market method to value inventory. Data table below

WIP Inventory Markers Pens Highlighters
Historical cost $24,000 $18,880 $30,000
Selling Price $36,000 $36,000 $36,000
Estimated cost to complete $4,800 $4,800 $6,800
Replacement Cost $20,800 $16,800 $31,800
Normal Profit Margin as % of
selling price 25% 25% 10%

When valueing the pens, the market value to be used in the ower-of-cost-or-market comparison is?
$22,200
$31,200
$16,800
$18,800

I honestly do not know what the answer is, so I guessed. I guessed 18,800 (wrong, of course)

I think it might be 16,800, but I am not 100% sure... can you help me

[RosieJ74]

Using Average Cost Method, determine the Cost of Goods Sold

# of Pairs Price Each Total
Beginning Inventory 10 $20 $200
Jan 6 Purchase 4 $25 $100
Jan 10 Sale 5 $- $-
Jan 15 Purchase 7 $30 $210
Jan 20 Sale 10 $- $-
Jan 25 Purchase 4 $30 $120

$378
$358
$265
$236

I answered 236, but I was wrong
I think it might be 378

I am not sure what I am doing wrong.

[RosieJ74]

On June 19th, 1999, a fire destroyed the entire uninsured merchandise inventory of Xbot Merchandising

Inventory, Jan 1st $80,000
Purchases, Jan 1st - June 19th $560,000
Sales, Jan 1st - June 19th $776,000
Markup % on Cost 25%

What is the approximate inventory loss as a result of the fire?

$19,200
$27,200
$34,000
$58,000


I can tell you that it is NOT 34k... I thought it was 27,700 but advice was to choose the other.

Please help

[morgaine300]

Eight questions in the same thread is a bit much. It's more appropriate to post them all separately. It's difficult to follow 8 separate questions, especially since someone might be able to answer one or some, but not all. And then you answer back on one or more, and by that time everything's in a big jumble. And that's just too hard to follow. Always easier if each question has its own thread.

It's also useful if you can include some of the reasoning behind your answers, like how you calculated them. Otherwise we would have to just go through and simply tell you how to do every one of these, essentially doing your homework for you. I would rather see your actual attempts at them, and how you got your answers, and then help you with what you are doing wrong. (You've stated "I don't know what I'm doing wrong." No one can tell you what you're doing wrong if they don't know what you're doing.) Also, if we can see what you're doing wrong, clearing that issue up might help you get the other problems on your own. (And the point is for you to learn what you're doing, not just get the answer to 8 questions.)