# 1 (5 points) Diane makes one product Diana adopted the dollar-value LIFO inventory method on 12-31-1

1 (5 points) Diane makes one product Diana adopted the dollar-value LIFO inventory method on 12-31-12 Her ending inventory
at 12-31-12 was \$55,000 Additional inventory data follows:
Inventory at
Price index
Cost of goods manufactured
Year
year-end prices
(base year 2012)
during the year
2013
\$56,280
1005
\$150,000
2014
\$54,540
1010
\$160,000
2015
\$57,798
1014
\$155,000
2016
\$58,986
1017
\$170,000
2017
\$55,917
1026
\$145,000
2018
\$57,680
1030
\$155,000
Compute the inventory at December 31, 2013, 2014, 2015, 2016, 2017 and 2018 AND the cost of goods sold for each year assuming
Diane uses the dollar-value LIFO method for each year
2 (25 points) Hartleyâ€™s accounting records included the following information:
Inventory, 01-01-13
\$96,250
Purchases during 2013 (excluding shipping)
\$1,450,180
Purchase returns during 2013
\$57,500
Freight-in on 2013 purchases
\$33,075
Sales during 2013
\$2,467,500
Hartley completed a physical inventory on 12-31-13 and calculated an ending inventory of \$106,000, at cost In recent years,
Hartley’s gross profit equaled 75% 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
3 (25 points) Gageâ€™s accounting records included the following information:
Inventory, 01-01-15
\$51,000
Purchases during 2015
\$705,000
Sales during 2015
\$1,662,000
Sales returns during 2015
\$66,480
Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of \$80,000, at retail selling price In recent
years, Gage’s gross profit equaled 55% 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
4 (2 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
450
\$3075
\$40
\$3
PQ27845
15
\$ 950
\$10
\$2
ZT15577
235
\$1700
\$29
\$0
SF98888
45
\$4300
\$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
5 (2 points) As of 12-31-15, Acme Company has three different inventory items on hand Data on the three items follows:
Item
Quantit
Unit cost
Replacement
Normal
Expected
Estimated
y
(Acme uses LIFO)
cost
profit
selling price
disposal costs
on hand
A
57
\$450
\$625
\$800
\$1,500
\$100
B
42
\$200
\$300
\$230
\$400
\$25
C
15
\$780
\$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
6 (3 points) Andre paid \$1,200,000 to purchase 15,000 chairs The 15,000 chairs consisted of 4 different chair types/styles: 3,500
rockers that Andre expects to sell for \$125 each, 5,000 gliders that Andre expects to sell for \$200 each, 2,000 straight-back
chairs that Andre expects to sell for \$100 each, and 4,500 recliners that Andre expects to sell for \$150 Using the relative sales
value method: What is the cost of one individual rocker? Round your answer to the nearest penny What will be Andreâ€™s gross profit amount if he sells 400 straight-back chairs? Round your answer to the nearest
dollar If at the end of the accounting period, Andre has 3,000 recliners on hand, what will Andre report as his recliner ending
inventory? Round your answer to the nearest dollar 1 NOTE â€“ when performing your calculations, make sure that you have allocated 100% of the \$1,200,000 to the 4
different chair types I suggest you use an excel spreadsheet (with formulas) to ensure you allocate the ENTIRE
\$1,200,000 2