Student Name:
Class:
Product Units Cost NRV
Inventory
Value
A1,000 10,000$ 13,600$ 10,000$
Loss from inventory write-down:
Inventory carrying value:
31,450$ «- Correct!
Requirement 1:
Requirement 2:
Inventory carrying value:
Instructor
Inventory
THE DECKER COMPANY
Problem 09-01
McGraw-Hill/Irwin
Unit
Unit Selling
Product Quantity Cost Price
A1,000 $10 $16
Given Data P09-01:
Sales commission
Student Name:
Class:
Cost Retail
Sales:
Less:
Goods available for sale
Normal shrinkage
Estimated ending inventory at cost
Employee discounts
Sales to employees
Sales to customers
100,000$ 150,000$
(150,000)
Cost Retail
Plus: Purchases
Plus: Net markups
Less: Net markdowns
Goods available for sale (excluding beg. inv.)
Goods available for sale (including beg. inv.)
Cost to retail percentage:
Sales to customers
Sales to employees
Employee discounts
Estimated ending inventory at cost:
Beginning inventory
Current period’s layer
100,000$ 150,000$
(15,000)
Requirement 1:
Beginning inventory
Less: Net markdowns
Instructor
Conventional Retail Method
ALQUIST COMPANY
LIFO Retail Method
ALQUIST COMPANY
Problem 09-05
McGraw-Hill/Irwin
Requirement 2:
Beginning inventory
Less:
Normal shrinkage
Sales:
Cost-to-retail percentage:
Plus: Net markups
Plus: Purchases
100,000$
150,000$
Given Data P09-05:
2016 operations information:
Beginning inventory cost, 1/1/2016
Beginning inventory retail value, 1/1/2016
Shrinkage estimate
Employee discount
Customer sales
Net markdowns
2016 Purchases cost
2016 Purchases retail value
Incoming freight costs
Net additional. markups
Student Name:
Class:
Cost Retail
20,000$ 30,000$
Requirement 2:
McGraw-Hill/Irwin
Instructor
3. Differences in cost-to-retail percentage for purchases during the month, beginning inventory, and ending
4. Markups on goods available for sale inconsistent between cost of goods sold and ending inventory.
5. A wide variety of merchandise with varying cost-to-retail percentages.
6. Incorrect reporting of markdowns, additional markups or cancellations.
Conventional Retail Method
GRAND DEPARTMENT STORE, INC.
Beginning inventory
Requirement 1:
The difference between the inventory estimate per retail method and the amount per the physical count may
be due to:
1. Theft losses.
2. Spoilage or breakage above normal.
Problem 09-06
Plus: Purchases
Less: Purchase returns
Plus: Net markups
Cost-to-retail percentage:
Less: Net markdowns
Normal spoilage
Net sales
20,000$
30,000$
Given Data P09-06:
Beginning inventory at cost, 10/1/2016
October, 2016 operations information:
Beginning inventory at retail, 10/1/2016
Markup cancellations
Net markdowns
Additional. markups
Purchases at cost
Purchases at retail
Purchase returns at cost
Purchase returns at retail
Student Name:
Class:
Cost Retail
27,500$ 45,000$
282,000 490,000
(10,000)
Net sales
Employee discounts
Cost Retail
Estimated ending inventory at cost:
Current period’s layer
Beginning inventory
Cost-to-retail percentage
Employee discounts
Goods available for sale (excluding beginning inventory)
Less: Net markdowns
Plus: Net markups
Less: Purchase returns
27,500$ 45,000$
282,000 490,000
Beginning inventory
Requirement 2:
Less: Net markdowns
LIFO Retail Method
RALEIGH DEPARTMENT STORE
Plus: Purchases
Problem 09-10
McGraw-Hill/Irwin
Instructor
Conventional Retail Method
RALEIGH DEPARTMENT STORE
Beginning inventory
Requirement 1:
Plus: Purchases
Cost-to-retail percentage:
Less: Purchase returns
Plus: Net markups
Student Name:
Class:
Problem 09-10
McGraw-Hill/Irwin
Instructor
Requirement 3:
Ending Inventory Inventory
Inventory Layers Layers
at Base Year at Base Year Converted To
Retail Prices Retail Prices Cost
56,100$ 55,000$ 50,000$ 30,500$
Year-end Retail Prices
2015
Ending Inventory at
Dollar-Value LIFO Retail Method
RALEIGH DEPARTMENT STORE
2016
45,000$
27,500$
Cost Retail
56,100$
62%
102%
Cost-to-retail percentage under LIFO retail method
12/31/15 inventory retail value
Appropriate price index of the January 1, 2015 price level
RALEIGH DEPARTMENT STORE
Given Data P09-10:
Appropriate price index of the January 1, 2015 price level
Cost-to-retail percentage under LIFO retail method
12/31/16 inventory retail value