physical inventory of Liverpool Company taken at December 31 reveals the following.
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A physical inventory of Liverpool Company taken at December 31 reveals the following.
| Per Unit | |||||||
| Item | Units | Cost | Market | ||||
| Car audio equipment | |||||||
| Speakers | 335 | $ | 90 | $ | 98 | ||
| Stereos | 250 | 111 | 100 | ||||
| Amplifiers | 316 | 86 | 95 | ||||
| Subwoofers | 194 | 52 | 41 | ||||
| Security equipment | |||||||
| Alarms | 470 | 150 | 125 | ||||
| Locks | 281 | 93 | 84 | ||||
| Cameras | 202 | 310 | 322 | ||||
| Binocular equipment | |||||||
| Tripods | 175 | 70 | 84 | ||||
| Stabilizers | 160 | 97 | 105 | ||||
Required:
1. Calculate the lower of cost or market for the inventory applied separately to each item.
2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account
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- A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 350 $ 105 $ 113 Stereos 265 126 116 Amplifiers 331 101 110 Subwoofers 209 67 57 Security equipment Alarms 485 165 155 Locks 296 108 98 Cameras 217 327 337 Binocular equipment Tripods 190 89 99 Stabilizers 175 110 120 Required:1. Calculate the lower of cost or market for the inventory applied separately to each item.2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: I) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.0 per litre. II) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, the market price was $0.48 per kg III) spare parts that had cost $25,000: Mostly for production machinery that was no longer in use, so it was unlikely they could be used. They have no resale value IV) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that the Mercator could use it to repair their milling machine V) $20,000 of electronic parts that were in good working order but had gone beyond their "sell by" dates on the packages Required a) Show how the inventory would appear in the balance sheet as at December 31, 2020 b) If Mercator manufacturing sales for 2020 totalled $500,000,…Quarry Company, a manufacturer of small tools, provided the following information for the year ended December 31, 2020. Inventory at December 31 based on physical count 1,750,000 Accounts payable at December 31 1.200,000 Net sales 8,500,000 Additional information A. Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. B. Goods were in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P 50,000, and the goods were shipped FOB shipping point on December 29, 2020. C. Work in process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020. D. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000…
- 44.Wusang Company installs replacement siding, windows, and louvered glass doors for family homes. At December 31, 2020, the balance of raw materials inventory account was P502,000, and the allowance for inventory writedown was P33,000. The inventory cost and market data at December 31, 2020, are as follows: Norma l Profit Aluminum siding Cost Replacement Cost Sales Price Net Realizabl e value 89,000 86,000 91,500 87,000 5,000 Mahogany siding 94,000 92,000 93,000 85,000 7,000 Louvered glass door 125,000 135,000 129,000 111,000 10,000 Glass windows 194,000 114,000 205,000 197,000 20,000 Total 502,000 427,000 518,500 480,000 32,000 The correct balance of the raw materials inventory after any allowance for write down isDimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Dimitri’s plant, at cost, on December 31, 2020) $1,520,000 Accounts payable at December 31, 2020 1,200,000 Net sales (sales less sales returns) 8,150,000 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,000 and were billed at $40,000. The shipment was on Dimitri’s loading dock waiting to be picked up by the common carrier. 2. Goods were in transit from a vendor to Dimitri on December 31, 2020. The invoice cost was $76,000, and the goods were shipped f.o.b. shipping point on December 29, 2020. 3. Work in process inventory costing $30,000 was sent to an outside processor for plating on December 30, 2020. 4. Tools…Dimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Dimitri's plant, at cost, on December 31, 2020) $1,520,000 Accounts payable at December 31, 2020 1,200,000 Net sales (sales less sales returns) 8,150,000 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,000 and were billed at $40,000. The shipment was on Dimitri's loading dock waiting to be picked up by the common carrier. 2. Goods were in transit from a vendor to Dimitri on December 31, 2020. The invoice cost was $76,000, and the goods were shipped f.o.b. shipping point on December 29, 2020. 3. Work in process inventory costing $30,000 was sent to an outside processor for plating on December 30, 2020. 4. Tools returned by…
- You are reviewing the inventories of Sheep-Ahoy Company and found the following items: In the shipping room was a product costing P 264,000 marked "Hold for shipping instruction". This item was not included in the count although the purchased order of the customer was received on December 10, 2022. Actual shipment and billing happened on January 2, 2023. On December 28, goods costing P 232,960 were shipped to Holy Cow Company. The invoice accompanying the goods with selling price of P 300,000 was marked "on consignment". These goods were excluded from the inventory at year end. The company received merchandise costing P 92,500 on January 3, 2023. The invoice was received and recorded on January 4, 2023 with FOB shipping point ter. Shipment was made on December 31. The goods were included in the year-end inventory although these were not yet received when the physical count was taken. A customized product of a VIP customer was completed and in the shipping room at year-end. Actual…1. Harry Company sells a new product. During a move to a new location, the inventory records for theproduct were misplaced. The entity has been able to gather some information from the purchases andsales records. The July purchases are as follows:Quantity Unit Cost Total CostJuly 5 10,000 65 650,00010 12,000 70 840,00015 15,000 60 900,00025 14,000 55 770,000On July 31, 17,000 units were on hand.The sales for July amount to P6,000,000, or 60,000 units at P100 per unit. Gross profit on sales for Julywas P2,400,000. 1. What is the number of units available for sale on July 1? 2.Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots andeventually sold.Taxes and documentation expenses on the transfer of the property amounted to P80,000.Lot class Number of lots Selling price per lot Total clearing costA 10 100,000 NoneB 20 80,000 100,000C 40 70,000 300,000D 50 60,000 800,0002. What amount should be allocated as total cost of Class B lots under the…21.ABC Company has the following data at Dec 31, 20X1:a. Goods sold in transit FOB destination, P100,000b. Goods costing 12,000 has been received, included in the inventory and recorded by purchase, but inspection found that the goods were all defective and would be returned immediately.c. Goods purchased in transit, P34,000, FOB Shipping pointd. Goods in the warehouse, per count P120,000e. Goods in the store at selling price P72,000 (gross profit is 20% of cost)f. Good held on consignment for XYZ Store, P15,000How much is the ending inventory at Dec 31, 20X1? 314,000 328,000 338,000 341,000
- I need help with this: Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 29019 appears below: Carpeting Dept Hard Covering Dept Inventory, January 1, 2019 $60,000 $26,000 Inventory, Dec 31, 2019 50,000 30,000 Net sales 500,000 800,000 Purchases 300,000 560,000 Purchases returns 28,000 8,000 Purchases discounts 16,000 4,000 Transportation in 18,000 14,000 Traceable department expenses 108,000 56,000 Common operating expenses of the firm were $225,000 Required a) Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an over effective income tax rate of 20%. Elgin uses a periodic inventory system. b) Calculate the gross profit percentage for each department. c) If the common expenses were allocated 40% to the carpeting department and 60% to the hard covering department, what would the net…Raffy Company, a manufacturer of small tools, provided the following information for the year endedDecember 31, 2019:Inventory at December 31 based on physical count 1,750,000Accounts payable at December 31 1,200,000Net sales 8,500,000Additional information:A. Included in the physical count were tools billed to a customer FOB shipping point on December31, 2019. These tools had a cost of P28,000 and were billed at P35,000. The shipment was inloading dock waiting to be picked by the common carrier.B. Goods were in transit from a vendor to Raffy Company on December 31, 2019. The invoice costwas P50,000 and the goods were shipped FOB shipping point on December 29, 2019.C. Work in process inventory costing P20,000 was sent to an outside processor for plating onDecember 30,2019.D. Tools returned by customers and held pending inspection in the returned goods area onDecember 31, 2019 were not included in the physical count. On January 8, 2020, the tools costingP26,000 were inspected and…Green Leaf Company had the following information available on December 31: Item #Units Cost Total cost Market value Total market value Wheelbarrows 100 $ 32.10 $ 3,210 $ 33.00 $ 3,300 Shovels 320 14.00 4,480 12.00 3,840 Gloves 80 8.60 688 9.40 752 Hoses 140 11.00 1,540 10.50 1,470 $ 9,918 $ 9,362 Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required?
