1、Shown below is activity for one of the products of Denver Office Equipment:
Required: Compute the ending inventory and cost of goods sold assuming Denver uses FIFO.
2、 Required: Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a periodic inventory system.
3、Required: Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a perpetual inventory system.
4、 Memphis Wholesale Market applies lower-of-cost-or-market valuation to individual products and has collected the following data:
5、Determine the balance sheet inventory carrying value for Products A, B, and C assuming that Memphis Wholesale Market prepares its financial statements according to International Financial Reporting Standards.
6、On March 17, 2011, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records:
Required: Compute the estimated cost of inventory lost in the flood.
7、 Andover Stores uses the average cost retail method to estimate its ending inventory. Information as of June 30, 2011, is as follows:
Required: Use the retail method to estimate the June 30, 2011, inventory.
附加题 （IFRS）
At the end of 2013, our company has three inventory items as follows:
(1) The cost of items A is $3,000,000, the original write-down of these items was 300,000. The general selling price of items A is 4,000,000 with disposal costs of $100,000.
(2) We have 20 tons of item C, the cost is $1,600 per ton. All the items C will be used in the production of 10 units of product XYZ which needs $2,000 of cost of completion for each unit. The market price of each product is $5,000, 8 units of all will be sold with a sales contract at the price of $4,500. Suppose
the disposal cost is 10% the selling price. So far no impairment loss has been recorded.
Requirement: calculate the NRV of each inventory item and the amount of write-down, prepare the journal entries for above all. (1)
NRV of A: 4,000,000-100,000=3,900,000 NRV > Cost
Dr. Inventory valuation allowance 300,000 Cr. inventory write down expense 300,000 (2) Step 1;
Cost of XYZ 20*1600+2000*10=52,000
NRV of XYZ 4500*8+5000*2-（4500*8+5000*2）*10%=41,400 Cost >NRV xyz is impaired Step2
Cost of C: 1600*20=32,000
NRV of C: 4500*8+5000*2-2000*10-（4500*8+5000*2）*10%=21,400 Impairment loss of C: 32,000-21,400=10,600 Dr. inventory write down expense 10,600 Cr. Inventory valuation allowance 10,600