Copyright © 2016 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 16/e Instructor’s Manual (For Instructor Use Only) 9-1
CHAPTER 9
Inventories: Additional Valuation Issues
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics
Questions
Brief
Exercises
Exercises
Problems
Concepts
for Analysis
1.
1, 2, 3,
4, 5, 6
1, 2, 3
1, 2, 3,
4, 5, 6
1, 2, 3,
9, 10
1, 2, 3, 5
2.
7, 8
4
7, 8
3.
9
5, 6
9, 10
9
6
4.
10, 11,
12, 13
7
11, 12, 13,
14, 15,
16, 17
4, 5
5.
14, 15, 16
8
18, 19, 20
6, 7, 8,
11, 12
4, 5
6.
17, 18
9
21
9
*7.
19
10
22, 23, 26
12, 13, 14
*8.
11
24, 25,
26, 27
11, 14
*9.
28
12, 13, 14
*This material is discussed in an Appendix to the chapter.
9-2 Copyright © 2016 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 16/e Instructor’s Manual (For Instructor Use Only)
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Learning Objectives
Brief
Exercises
Exercises
Problems
1. Describe and apply the lower-of-cost-or-net realizable
value rule.
1, 2, 3
1, 2, 3,
4, 5, 6
1, 2, 3,
9, 10
2. Describe and apply the lower-of-cost-or-market rule.
1, 2, 3
1, 2, 3,
4, 5, 6
1, 2, 3,
9, 10
3. Understand other inventory valuation issues.
4, 5, 6
7, 8, 9, 10
9
4. Determine ending inventory by applying the gross
profit method.
7
11, 12, 13,
14, 15, 16,
17
4, 5
5. Determine ending inventory by applying the retail
inventory method.
8
18, 19, 20
6, 7, 8
6. Explain how to report and analyze inventory.
9
21
9
*7. Determine ending inventory by applying the LIFO
retail methods.
10, 11
22, 23, 24,
25, 26,
27, 28
11, 12,
13, 14
*8. Compare the accounting procedures related to the
valuation of inventories under GAAP and IFRS.
*This material is discussed in an Appendix to the chapter.
Copyright © 2016 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 16/e Instructor’s Manual (For Instructor Use Only) 9-3
ASSIGNMENT CHARACTERISTICS TABLE
Item
Description
Level of
Difficulty
Time
(minutes)
E9-1
Lower-of-cost-or-market.
Simple
15–20
E9-2
Lower-of-cost-or-market.
Simple
10–15
E9-3
Lower-of-cost-or-market.
Simple
15–20
E9-4
Lower-of-cost-or-market—journal entries.
Simple
10–15
E9-5
Lower-of-cost-or-market—valuation account.
Moderate
20–25
E9-6
Lower-of-cost-or-market—error effect.
Simple
10–15
E9-7
Relative sales value method.
Simple
15–20
E9-8
Relative sales value method.
Simple
12–17
E9-9
Purchase commitments.
Simple
05–10
E9–10
Purchase commitments.
Simple
15–20
E9–11
Gross profit method.
Simple
8–13
E9–12
Gross profit method.
Simple
10–15
E9–13
Gross profit method.
Simple
15–20
E9–14
Gross profit method.
Moderate
15–20
E9–15
Gross profit method.
Simple
10–15
E9–16
Gross profit method.
Simple
15–20
E9–17
Gross profit method.
Moderate
20–25
E9–18
Retail inventory method.
Moderate
20–25
E9–19
Retail inventory method.
Simple
12–17
E9–20
Retail inventory method.
Simple
20–25
E9–21
Analysis of inventories.
Simple
10–15
*E9-22
Retail inventory method—conventional and LIFO.
Moderate
25–35
*E9-23
Retail inventory method—conventional and LIFO.
Moderate
15–20
*E9-24
Dollar-value LIFO retail.
Simple
10–15
*E9-25
Dollar-value LIFO retail.
Simple
5–10
*E9-26
Conventional retail and dollar-value LIFO retail.
Moderate
20–25
*E9-27
Dollar-value LIFO retail.
Moderate
20–25
*E9-28
Change to LIFO retail.
Simple
10–15
P9-1
Lower-of-cost-or-market.
Simple
10–15
P9-2
Lower-of-cost-or-market.
Moderate
25–30
P9-3
Entries for lower-of-cost-or–market—cost-of–goods-
sold and loss.
Moderate
30–35
P9-4
Gross profit method.
Moderate
20–30
P9-5
Gross profit method.
Complex
40–45
P9-6
Retail inventory method.
Moderate
20–30
P9-7
Retail inventory method.
Moderate
20–30
9-4 Copyright © 2016 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 16/e Instructor’s Manual (For Instructor Use Only)
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Item
Description
Level of
Difficulty
Time
(minutes)
P9-8
Retail inventory method.
Moderate
20–30
P9-9
Statement and note disclosure, LCM, and purchase
commitment.
Moderate
30–40
P9–10
Lower-of-cost-or-market.
Moderate
30–40
*P9-11
Conventional and dollar-value LIFO retail.
Moderate
30–35
*P9-12
Retail, LIFO retail, and inventory shortage.
Moderate
30–40
*P9-13
Change to LIFO retail.
Moderate
30–40
*P9-14
Change to LIFO retail; dollar-value LIFO retail.
Complex
40–50
CA9-1
Lower-of-cost-or-market.
Moderate
15–25
CA9-2
Lower-of-cost-or-market.
Moderate
20–30
CA9-3
Lower-of-cost-or-market.
Moderate
15–20
CA9-4
Retail inventory method.
Moderate
25–30
CA9-5
Cost determination, LCM, retail method.
Moderate
15–25
CA9-6
Purchase commitments.
Moderate
20–25
LEARNING OBJECTIVES
1. Understand and apply the lower-of-cost and-net realizable value rule.
2. Understand and apply the lower-of-cost-or-market rule.
3. Understand other inventory valuation issues.
4. Determine ending inventory by applying the gross profit method.
5. Determine ending inventory by applying the retail inventory method.