312 hka ch 8 & 9 template

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    Kyle Anderson

    ACCT 312

    Ch 8-24

    In Trial

    Balance C$/Index X 100

    label Year Current Index Base Year Index

    Dollars Dollars

    Base Year 1/1/2012 160,000 100 160,000 100

    Year-end 12/31/2012 151,200 112 135,000

    Base Year 1/1/2012 160,000 100 160,000

    Year-end 12/31/2012 151,200 112 135,000

    Erosion of base Year 25,000

    New Base Year layer 135,000 100

    Year-end 12/31/2013 195,500 115 170,000

    Base year Layer 135,000 100

    New layer 1 35,000 115

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    Reported on Balance Sheet

    B$ X Index / 100

    Adjusted

    Dollars

    160,000$ for 12/31/2011

    135,000$ for 12/31/2012

    135,000

    40,250

    175,250$ for 12/31/2013

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    Kyle Anderson Date 1/17/2013

    ACCT 312

    Ch 8-26

    Current $ Divide Layer MultiplyYear End BY Price Price At Base By Price

    December: Inventory Index Index Year $ Index

    BASE LAYER 12/31/2009 70,000 100

    12/31/2010 88,200 105

    12/31/2011 95,120 116

    12/31/2012 108,000 120

    12/31/2013 100,000 125

    12/31/2009

    BASE LAYER 12/31/2009 70,000 100 70,000

    12/31/2010

    Year-end 12/31/2010 88,200 105 84,000

    BASE LAYER 12/31/2009 70,000 100 70,000

    New layer 1 105 14,000

    12/31/2011

    Year-end 12/31/2011 95,120

    BASE LAYER 12/31/2009 70,000

    New layer 1 12/31/2010

    * layer is reduced

    12/31/2012

    Year-end 12/31/2011 108,000

    Base Layer 12/31/2009 70,000

    Adj. Layer 1 12/31/2010 -

    Ne La er 2 12/31/2012

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    Ending

    Inventory

    at LIFO Cost

    ValuationPrice for Inventory

    Index

    100 70,000$

    100 70,000

    105 14,700

    84,700$

    -$

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    Name Kyle Anderson Exercise 9-3

    Section 312 Intermediate Accounting Ch 9

    Date Sedato Company

    Ceiling Floor

    Sell $ - Sell cost

    Cost Replace- Net NRV Less Designated Final

    Item Per ment Realizable Normal Market Inventory

    No. Unit Cost Value Profit Value LCM Quantity Value

    1320 3.20 3.00 +4.50-.35=4.15 +4.15-1.25=2.90 3.00 3.00 1,200 3,600

    1333 2.70 2.30 2.90 2.40 2.40 2.40 900 2,160

    1426 4.50 3.70 800 42

    1437 3.60 3.10 1,000

    1510 2.25 2.00 700

    1522 3.00 2.70 500

    1573 1.80 1.60 3,000

    1626 4.70 5.20 1,000

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    Name Kyle Anderson Ex 9-9

    Section 312 Intermediate Accounting Ch 9

    Date

    E9-9

    Account Titles Debit Credit

    Dec. Unrealized holding loss - Income (Purchase commitments) 25,000

    Estimated liability on purchase commitments 25,000

    E9-11

    (1)

    (2)

    (3)

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    Name Kyle Anderson Exer

    Section 312 Inter Ch 9

    Date

    E9-11

    Markup on Markup on

    Cost Conversion Sales

    a 20.00% 20/(100+20) 16.67%

    b 25.00% 25/(100+25) 20.00%

    c 33.33% 3.33/(100+33.33 25.00%

    d 50.00% 50/(100+50) 33.33%

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    cises 9-11

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    Name Kyle Anderson

    Section 312 Intermediate Ch 9

    Date

    E9-16

    Lumber Millwork Hardware

    Inventory 1/1/13 Cost 250,000 90,000 45,000

    Purchases to 8/18/13 Cost 1,500,000 375,000 160,000

    Cost of goods Available 1,750,000 465,000

    Deduct Cost of Goods Sold

    Inventory 8/18/13 Cost

    Computation of cost of goods sold: Markup on Cost Markup on Sales Sales

    Lumber: 25.00% 20.00% 2,050,000

    Millwork: 30.00% 533,000

    Hardware: 40.00% 245,000

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    Exercises 9-16

    Sales at Cost

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    Name Kyle Anderson Exercise 9-18

    Section 312 Intermediate Accounting Ch 9

    Date McKenna Company

    (a) Cost Retail

    Beginning Inventory 58,000 100,000

    Purchases (net) 122,000 200,000

    Totals 180,000

    Net Markups 20,000

    Totals 180,000

    Net Markdowns (30,000)Totals 180,000

    Sales 186,000

    Ending Inventory at Retail

    (b)

    1.2.

    3.

    4.

    (c)

    1.

    2.

    3.

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    Name Kyle Anderson *Exercises 9-24

    Section 312 Intermediate Accounting Ch 9

    Date

    *E9-24

    Cost to

    (a) Cost Retail Retail Ratio

    Base Beginning Inventory 222,000 300,000 74%

    Year 1 Purchases (net) 364,800 480,000 76%

    Ending Inventory A 294,300

    Ending Inventory B 359,700Price Level Index 100% 9%

    Base Year Layer 1

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    Name Kyle Anderson

    Section 312 Intermediate Ch 9

    Date Sp

    A B C D E F G H

    +B / +C +D - F

    RetailEnd. Inv. Yr. End Ending Inv. Layers at New Price

    at Current Price at Base-Year Year of Base-Year Layer Index

    Year Price Index Retail Layer Retail Retail Per Yr.

    2010 Base Year,

    Layer 1 100,000 100% 100,000

    2010 Base Year,

    Layer 1 100,000 100,000 100%

    2011 121,900 106% 115,000 2011 100,000 106%

    Layer 1 100,000 100%

    Total Inventory

    2012 138,750 111%

    2013 126,500 115%

    2014 162,500 125%

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    Exercise 9-27

    ringsteen Corporation

    I J

    +G * H * I

    Cost to Dollar-Value

    Retail LIFO

    % Inventory

    54% 54,000

    57% #VALUE!

    54% 54,000

    #VALUE!

    60%

    61%

    58%

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