# act 3391 traditional hw assignment

33. (5 points) Hartleyâ€™s accounting records included the following information:

Inventory, 01-01-13\$319,500

Purchases during 2013 (excluding shipping)\$1,200,000

Purchase returns during 2013\$15,000

Freight-in on 2013 purchases\$8,500

Sales during 2013\$1,998,750

Hartley completed a physical inventory on 12-31-13 and calculated an ending inventory of \$525,000, at cost. In recent years, Hartley’s gross profit equaled 105% of Hartleyâ€™s cost. Hartley suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

34. (8 points) Gageâ€™s accounting records included the following information:

Inventory, 01-01-15\$211,000

Purchases during 2015\$805,000

Purchase returns during 2015\$4,000

Freight-out on 2015 sales\$10,000

Sales during 2015\$1,662,000

Sales returns during 2015\$60,000

Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of \$100,000, at retail selling price. In recent years, Gage’s gross profit equaled 42% of Gageâ€™s selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

35. (3 points) As of 12-31-15, Zena Company has four different inventory items on hand. Data on the four items follows:

 Item Quantity on hand Unit cost Expected selling price Estimated disposal costs C3Z22P3 550 \$30.75 \$40 \$3 PQ27845 75 \$ 9.50 \$10 \$2 ZT15577 253 \$17.00 \$29 \$0 SF98888 87 \$43.00 \$50 \$9

Using the lower-of-cost-or-net realizable value approach applied on an individual-item basis, determine if Zena needs to make an entry to write her inventory down. If so, prepare the entry Zena should make

36. (4 points) As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows:

 Item Quantity on hand Unit cost (Acme uses LIFO) Replacement cost Normal profit Expected selling price Estimated disposal costs A 75 \$405 \$625 \$750 \$1,500 \$100 B 24 \$310 \$300 \$230 \$400 \$25 C 51 \$775 \$800 \$300 \$1,000 \$250

Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare the entry Acme should make