1

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...

Question

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:

Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Cost $ 54 Per Unit Replacement Cost $ 49 94 Selling Price $ 74 114 94 144 44 69 Uw 54 114 34 84 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 35% of selling price. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round intermediate calculations. Round final answers to 2 decimal places.) Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value $ 54.00 84 A $ 541 $ 49 194 5469 114 847 E 347 421
Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Cost $ 14,000 104,600 8,600 5,000 Retail $ 22,000 167,000 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Net sales 8,000 7,000 4,000 4,400 154,000 Required: Complete the table below to estimate the ending inventory and cost of goods sold for 2021, applying the conventional retail method using the information provided. Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Purchases Freight-in Less: Purchase returns Plus: Net markups Less: Net markdowns Goods available for sale Cost-to-retail percentage Less: Normal spoilage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold

Answers

Lower of cost or market(LCM) rule to units of ending inventory

PRODUCT COST REPLACEMENT COST NRV NRV-NP MARKET PER UNIT INVENTORY VALUE
A 54 49

65.6

{74-(74×15%)-(54×5%)}

39.7

{65.6-(75×35%)}

49 49
B 94 84

101.6

{114-(114×15%)-(94×5%)}

61.7

{101.6-(114×35%)}

84 84
C 54 69

82.6

{94-(94×15%)-(54×5%)}

49.7

{82.6-(94×35%)}

69 54
D 114 84

128.1

{144-(144×15%)-(114×5%)}

88.2

{128.1-(114×35%)}

88.2 88.2
E

34

42

39.1

{44-(44×15%)-(34×5%)}

23.7

{39.1-(44×35%)}

39.1 34

NRV = selling price- selling cost

NRV- NP = NRV - 35%of selling price

Market = middle of replacement cost ,NRV,NRV-NP

Per unit inventory value = lower of cost or market.

Conventional retail method

Cost Retail
Beginning inventory 14,000 22,000
Plus: purchases 104,600 167,000
Freight in 8,600
Less: purchase returns (5,000) (8,000)
Plus: net markups 7,000
Cost to retail percentage 122,000÷188,000= 65%
Less: net markdowns (4,000)
Goods available for sale 122,000 184,000
Less: Normal spoilage (4,400)
Net sales (154,000)
Estimated ending inventory at retail 25,600
Estimated Ending inventory at cost (25,600×65%) (16,640)
Estimated cost of goods sold 105,560

____×____

Any doubt please comment


Similar Solved Questions

1 answers
3. Suppose the curve x = = t3 – 9t, y=t+ 3 for 1 <t< 2...
3. Suppose the curve x = = t3 – 9t, y=t+ 3 for 1 <t< 2 is rotated about the x-axis. Set up (but do not evaluate) the integral for the surface area that is generated....
1 answers
How do you draw electron orbital diagrams?
How do you draw electron orbital diagrams?...
1 answers
Selected data taken from the accounting records of Ginis Inc. for the current year ended December...
Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $7,100 $7,760 Accounts payable (merchandise creditors) 38,910 42,950 Inventories 74...
1 answers
Fe S0y+Po(No) 4.2 Will precipitation occur when the following solutions are mixed? If so, write a...
Fe S0y+Po(No) 4.2 Will precipitation occur when the following solutions are mixed? If so, write a balanced chemical equation for the reaction. (a) Na CO3 and AgNO3, (b) NaNO3 and NISO4, c) FeSO4 and Pb(NO3)2 4. 4.2 Will precipitation occur when the following solutions are mixed? If so, write a balan...
1 answers
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $201.600 of total manufacturing overhead for an estimated activity level of 8...
1 answers
1. - peints My Notes Ask Your The figure below is from the Energy Forms PhET...
1. - peints My Notes Ask Your The figure below is from the Energy Forms PhET that we used in class. A. If the system is the biker, bike, wheel, electrical wire, and the water, select all statements that are true: (Select all that apply.) O Thermal energy is transferred out of the system. OMechanical...
1 answers
Identify the starting material for the following transformation. 1) (CH3CH2)2Culi 2) H20 - hotely hoy at...
Identify the starting material for the following transformation. 1) (CH3CH2)2Culi 2) H20 - hotely hoy at gays B)...
1 answers
Score: U of 1 pt 2 of 4 (2 complete) HW Score: 11.46%, 0.46 of 4...
Score: U of 1 pt 2 of 4 (2 complete) HW Score: 11.46%, 0.46 of 4 pts 11.3.1-T Question Help Assume that both populations are normally distributed (a) Test whether Hy at the =0.01 level of significance for the given sample data. (b) Construct a 99% confidence interval about 12 Population 1 Population...
1 answers
Hello, can any body help me with this question please? 2.51 A rod conststing of two...
Hello, can any body help me with this question please? 2.51 A rod conststing of two cyltndrical portions AB and BC ts restraned Home work 2 at both ends. Porton AB ts made of steel (E 200 GPa, a 11.7 x 10 C) and portion BC ts made of brass(E 105 CPa a 20.9 x 10-rc). Knowing that tho rod ts tnital...
1 answers
Need help with the FBD, the unknowns, and L1 and L2 thank you In this case...
need help with the FBD, the unknowns, and L1 and L2 thank you In this case both top and bottom supports of the PVC pipe are fixed. There is only one lever arm at the center of the pipe where torque is caused by applying weights of 5 N on each side of the hanger. Place dial gage at the point whe...
1 answers
Reserve Problems Chapter 13 Section 2 Problem 3 Consider the following computer output for an experiment....
Reserve Problems Chapter 13 Section 2 Problem 3 Consider the following computer output for an experiment. Source DF SS Factor 5 ? MS F P-value ? ? ? Error 27.08 ? ? 29 66.64 Total (a) How many replicates did the experimenter use? (b) Fill in the missing information in the ANOVA table. Round your ans...
1 answers
How do you solve #6x - 4( 6- x ) = 10#?
How do you solve #6x - 4( 6- x ) = 10#?...
1 answers
8-7 A rectangular beam with cross section b h=24 in., and d tored load of 3.9...
8-7 A rectangular beam with cross section b h=24 in., and d tored load of 3.9 kips/ft, including its own dead load. The beam is simply supported with a is reinforced with five No. 7 Grade-60 bars, two of which are cutoff between midspan and the and three of which extend 10 in. past the centers of su...
1 answers
For reference, the answers are 17.56 MPa and 41.25 MPa The cross section below has dimensions...
For reference, the answers are 17.56 MPa and 41.25 MPa The cross section below has dimensions h = 74 mm, t1 = 6 mm = 8 mm and b 91 mm. 2 % Matlab input: b-91; ybar Iz = = 55.47029702978297; 1.e81573240924e926"10"6; MZ = 716; The centroid position is given by: y 55.47029702970297 mm The momen...

-- 0.008296--