Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 1CCTC
1.
To determine
Gross Profit Method: Under this method, the beginning inventory is added to the net purchases during the period which results in the goods available for sale. Then, the estimated cost of goods sold is deducted from the goods available for sale to estimate the ending inventory.
Inventory turnover ratio: This is a financial metric that is used to quantify the number of times the inventory is used or sold during an accounting period.
To state: the inventory method that T Corporation uses to value its inventories.
2.
To determine
To state: the additional expenditures that the company includes in the initial cost of merchandise.
3.
To determine
To Calculate: the gross profit ratio and the inventory turnover ratio for the fiscal year ended January 30, 2016, and also compare the ratios.
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4 points
This is a multiple answer question.
Duncan Company miscounted its ending inventory during the December 31, 2025 physical count. Which items will be wrong on the 2025 franciaments assuming this
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Question 4 of 8
Current Attempt in Progress
Marigold Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its
inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products
appear below.
Estimated selling price
Cost
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Normal profit
Item D
Item E
Item F
Item C
$
$
Item D
$
$252
158
252
63
42
Item E
$231
168
151
63
42
Item F
$200
168
147
63
42
Item G
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168
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53
42
Item H
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105
Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the
inventory items above.
147
63
42
Item I
$189
76
63
63
42
С23
Jx
А
B
C.
D
E
F
G
H.
K
I also need your assistance in claulating the following economic order quantity (Qe) given new data for 2017.
Our inventory generally follows Pareto's Law; therefore, I have emphasized controlling those items representing the majority of our inventory activity.
One of those items in IV (intravenous) setups.
Our current situation is as follows:
2016 Price
$50 for each IV setup
50,000
$25
2017 Demand
2017 Operating Cost
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6.25%
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$0.50
The IV distributor would like to distribute a new model setup in 2017 at the same price, but he tells us that he is willing to reduce our carrying costs by making monthly deliveries.
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Ms. Care believes, and the distributor agrees, that each registered nurse (RN) will be required to attend a 2 hour seminar.
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Chapter 8 Solutions
Intermediate Accounting, 10 Ed
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BECh. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2ECh. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.5ECh. 8 - Physical quantities and costs included in...Ch. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.23ECh. 8 - Prob. 8.25ECh. 8 - Prob. 8.30ECh. 8 - Prob. 8.31ECh. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.3PCh. 8 - Prob. 8.4PCh. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Prob. 8.6PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.16PCh. 8 - Prob. 8.1DMPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Prob. 8.4DMPCh. 8 - Prob. 8.5DMPCh. 8 - Prob. 8.8DMPCh. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 1CCTCCh. 8 - Prob. 2CCTC
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