Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $43,398.00. During the year they purchased an inventory with a retail cost of $621,192.00. After performing a physical inventory, they calculated their inventory cost at retail to be $64,405.00. The mark up is 100% of cost. Determine the ending inventory at its estimated cost.
Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail cost of $43,398.00. During the year they purchased an inventory with a retail cost of $621,192.00. After performing a physical inventory, they calculated their inventory cost at retail to be $64,405.00. The mark up is 100% of cost. Determine the ending inventory at its estimated cost.
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| Purchases | 350,000 |
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ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2014, and the inventory on-hand at that time totaled $75,000, which reflects historical cost. Record the 2014 Cost of Goods Sold and the 12/31/14 Inventory adjustment. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net realizable value at a total inventory level. A review of inventory data further indicated that the current retail sales value of the ending inventory is $110,000 and estimated costs of completion and shipping is 15% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting for adjustments of inventory to market value.
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1-Nash Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Nash, has gathered the following data concerning inventory. At May 31, 2017, the balance in Nashâs Raw Materials Inventory account was $456,960, and Allowance to Reduce Inventory to NRV had a credit balance of $27,660. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Nashâs May 31, 2017, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value Aluminum siding $78,400 $71,680 $62,720 Cedar shake siding 96,320 105,280 94,976 Louvered glass doors 125,440 208,768 188,496 Thermal windows 156,800 173,376 156,800 Total $456,960 $559,104 $502,992 -Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2017. Balance in the Allowance to Reduce Inventory to NRV $ and The amount of the gain (loss)$
2-The records for the Clothing Department of Novakâs Discount Store are summarized below for the month of January.
| inventory, January 1: at retail $24,600; at cost $17,000 | ||||||
| Purchases in January: at retail $138,400; at cost $94,259 | ||||||
| Freight-in: $9,100 | ||||||
| Purchase returns: at retail $3,000; at cost $2,300 | ||||||
| Transfers in from suburban branch: at retail $13,100; at cost $6,900 | ||||||
| Net markups: $8,000 | ||||||
| Net markdowns: $3,900 | ||||||
| Inventory losses due to normal breakage, etc.: at retail $300 | ||||||
| Sales revenue at retail: $95,400 | ||||||
| Sales returns: $2,400 Compute the inventory for this department as of January 31, at retail prices.
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