Answer 1:

Ending Inventory = (Beginning Inventory + Purchases – Sales) * Unit Price

= (2,400 + 1,000 + 4,000 – 4,300) * $8
= $24,800
Answer 2:
Cost of Goods Sold = Sales * (1- Gross Profit Rate)
= $5,000,000 * (1 – 20%)
= $4,000,000

Merchandise Inventory of Glaus at December 31, 2021 = Beginning Inventory + Purchases –

Cost of Goods Sold
= $1,500,000 + $3,000,000 - $4,000,000
= $500,000
Answer 3:
Inventory value at base year = Ending inventory/Cost index
= 126,000/1.05
= $120,000

Change in inventory = Inventory value at base year - Inventory cost

= $120,000 - $100,000
= $20,000

Inventory balance reported = Inventory cost + (Change in inventory * Cost index)

= $100,000 + ($20,000 * 1.05)
= $121,000

Answer 4:
Number of Units in the Ending Inventory = Beginning Inventory + Purchases – Sales
= 60 units + 360 units – 270 units
= 150 units
Answer 5:
Cost of goods sold = 300% * Selling Expenses
= 300% * $280,000
= $840,000
Cost of Goods available for sale = Cost of goods sold + Ending Inventory
= $840,000 + $310,000
= $1,150,000

Answer 6:
Inventory Turnover ratio = Cost of goods sold/Average Inventory
= $660,000/((80,000+120,000)/2)
= 6.6
Average Days to Sell Inventory = 365/Inventory Turnover Ratio
= 365/6.6
= 55 days

Answer 7:
For Product #1
Replacement Cost = $32.00
Net Realizable Value = Estimated Selling price – Estimated cost of dispose
= $50.00 - $15.00
= $35.00
Market Value = Net Realizable Value – Profit Margin
= $35.00 – ($50.00 * 20%)
= $25.00
Therefore, the lower of the two is the Market Value which is $25.00
For Product #2
Replacement Cost = $40.00
Net Realizable Value = Estimated Selling price – Estimated cost of dispose
= $75.00 - $23.00
= $52.00
Market Value = Net Realizable Value – Profit Margin
= $52.00 – ($75.00 * 20%)
= $37.00
Therefore, the lower of the two is the Market Value which is $37.00
Unit Value For Product #1 = $25.00
Unit Value For Product #1 = $37.00

Answer 8:
Inventory at the end of the year = Physical Inventory + In Transit
= $900,000 + $50,000
= $950,000

Answer 9:
Cost of goods sold = (360 * $40) + (10 * $30)
= $14,400 + $300
= $14,700

Answer 10:
Goods available for sale (Cost) = Beginning Inventory + Net Purchases
= $138,960 + $300,000
= $438,960
Goods available for sales (Retail) = Beginning Inventory + Net Purchases + Net Markups –
Net Markdowns
= $156,000 + $600,000 + $30,000 - $42,000
= $744,000
Cost-to-retail percentage = Goods available for sale (Cost)/ Goods available for sales (Retail)
= $438,960/$744,000
= 59%
Estimated Ending Inventory at retail = Goods available for sales (Retail) – Net Sales
= $744,000 - $624,000
= $120,000
Estimated Ending Inventory at cost = Estimated Ending Inventory at retail * Cost-to-retail
percentage
= $120,000 * 59%
= $70,800