Student Name:

Class:
Problem 09-01

THE DECKER COMPANY

Inventory

Requirement 1:
(1) (2) (3) (4) (5)

Ceiling Floor
Designated
Market
Value Inventory
[Middle Value
value of [Lower of
Product Units RC NRV NRV-NP (1), (2) & (3)] Cost (4) and (5)]
A 1,000 $ 12,000 $ 13,600 $ 7,200 $ 7,200 $ 10,000 $ 10,000
B 800 8,800 $ 12,240 $ 7,440 8,800 12,000 8,800
C 600 1,200 $ 4,080 $ 3,360 3,360 1,800 3,360
D 200 800 $ 1,020 $ 460 800 1,400 800
E 600 7,200 $ 6,630 $ 3,270 6,630 8,400 6,630
Totals $ 26,790 $ 33,600 $ 29,590
Try again! Correct! Try again!

Inventory carrying value:

Requirement 2:

Inventory carrying value:

Loss from inventory write-down:

Requirement 3:
Inventory
Product Cost NRV Value
A
B
C
D
E
Given Data P09-01:

THE DECKER COMPANY

Unit
Unit Unit Selling
Product Quantity Cost RC Price
A 1,000 $10 $12 $16
B 800 15 11 18
C 600 3 2 8
D 200 7 4 6
E 600 14 12 13

Sales commission 15%

Normal profit as percentage of selling price 40%
 Student Name:
Class:
Problem 09-05

Requirement 1:
ALQUIST COMPANY
Conventional Retail Method

Cost Retail
Beginning inventory
Plus: Purchases
Freight-in
Plus: Net markups

Cost-to-retail percentage:

Less: Net markdowns

Goods available for sale
Less:
Normal shrinkage
Sales:
Sales to customers
Sales to employees
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold

Requirement 2:
ALQUIST COMPANY
LIFO Retail Method

Cost Retail
Beginning inventory
Plus: Purchases
Freight-in
Plus: Net markups
Less: Net markdowns
Goods available for sale (excluding beg. inv.)
Goods available for sale (including beg. inv.)
Cost to retail percentage:
Less:
Normal shrinkage
Sales:
Sales to customers
Sales to employees
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost:
Retail Cost
Beginning inventory
Current period's layer
Total
Estimated cost of goods sold
Given Data P09-05:

ALQUIST COMPANY

2013 operations information:

Beginning inventory cost, 1/1/2013 $ 100,000

Beginning inventory retail value, 1/1/2013 $ 150,000
2013 Purchases cost $ 1,387,500
2013 Purchases retail value $ 2,000,000
Incoming freight costs $ 10,000
Net additional. markups $ 300,000
Net markdowns $ 150,000
Shrinkage estimate $ 15,000
Employee discount 20%
Employee sales $ 250,000
Customer sales $ 1,750,000
 Student Name:
Class:
Problem 09-06

Requirement 1:
GRAND DEPARTMENT STORE, INC.
Conventional Retail Method

Cost Retail
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Plus: Net markups

Cost-to-retail percentage:

Less: Net markdowns

Goods available for sale
Less:
Normal spoilage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost

Requirement 2:
The difference between the inventory estimate per retail method and the amount per the physical count may
be due to:
er the physical count may
Given Data P09-06:

GRAND DEPARTMENT STORE, INC.

October, 2013 operations information:

Beginning inventory at cost, 10/1/2013 $ 20,000
Beginning inventory at retail, 10/1/2013 $ 30,000
Purchases at cost $ 100,151
Purchases at retail $ 146,495
Freight-in $ 5,100
Purchase returns at cost $ 2,100
Purchase returns at retail $ 2,800
Additional. markups $ 2,500
Markup cancellations $ 265
Net markdowns $ 800
Normal spoilage and breakage $ 4,500
Sales $ 135,730
 Student Name:
Class:
Problem 09-10

Requirement 1:
RALEIGH DEPARTMENT STORE
Conventional Retail Method

Cost Retail
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Purchase discounts
Plus: Net markups

Cost-to-retail percentage:

Less: Net markdowns

Goods available for sale
Less:
Net sales
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost

Requirement 2:
RALEIGH DEPARTMENT STORE
LIFO Retail Method

Cost Retail
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Purchase discounts
Plus: Net markups
Less: Net markdowns
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)
Cost-to-retail percentage
Less:
Net sales
Employee discounts
Estimated ending inventory at retail
Estimated ending inventory at cost:
Retail Cost
Beginning inventory
Current period's layer
Total
 Student Name:
Class:
Problem 09-10

Requirement 3:
RALEIGH DEPARTMENT STORE
Dollar-Value LIFO Retail Method

Ending Inventory Inventory

Inventory Layers Layers
Ending Inventory at at Base Year at Base Year Converted To
Year-end Retail Prices Retail Prices Retail Prices Cost
2012

Total ending inventory at dollar-value LIFO retail cost

2013

Total ending inventory at dollar-value LIFO retail cost

Given Data P09-10:

RALEIGH DEPARTMENT STORE

1/1/13 inventory retail value $ 45,000

1/1/13 inventory cost $ 27,500

Transactions during 2013:

Cost Retail
Gross purchases $ 282,000 $ 490,000
Purchase returns 6,500 10,000
Purchase discounts 5,000
Gross sales 492,000
Sales returns 5,000
Employee discounts 3,000
Freight-in 26,500
Net markups 25,000
Net markdowns 10,000

12/31/12 inventory retail value $ 56,100

Cost-to-retail percentage under LIFO retail method 62%
Appropriate price index of the January 1, 2012 price level 102%

12/31/13 inventory retail value $ 48,300

Cost-to-retail percentage under LIFO retail method 61%
Appropriate price index of the January 1, 2010 price level 105%