act 3391 traditional hw assignment
33. (5 points) Hartley’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 Hartley’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) Gage’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 Gage’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
