312 hka ch 8 & 9 template
TRANSCRIPT
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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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