Question

Devin Corp operates both a retail and wholesale division selling a line of submersible pumps. Both...

Devin Corp operates both a retail and wholesale division selling a line of submersible pumps. Both operations have significant inventory. For the retail division, Devin uses the retail weighted average inventory method and makes sure to apply it in a way that approximates lower of cost or market. In 2015, Devin has the following results in the retail division: Purchases at invoice cost $680,000 and at suggested retail value $1,296,000 Purchase returns were $11,000 at cost and at suggested retail value $20,900 Freight in on purchases $16,400. Beginning inventory at retail is $107,500 and the inventory reported on the 2014 balance sheet was 54,600. Mark ups were $4,000 and mark downs were $46,000. Net sales for the year were $1,284,000.

Required for the retail division: I HAVE ALL OF THESE 3, JUST NEED THE OTHER 5 NOTED BELOW

1. Calculate the ending inventory that should be reported on the end of 2015 balance sheet.

2. Calculate COGS for 2015.

3. Calculate gross margin ratio for 2015

For the wholesale division, Devin uses the dollar value LIFO method of inventory. The base year established for LIFO is 2014. The inventory at the end of 2014 was calculated as $1,040,500. For the next 3 years you have the following information:

Ending inventory counted at cost

Price level increase from 2014

Net Purchases

Net Sales

2015

1,085,000

3%

2016

1,091,000

5%

$2,935,000

$5,456,000

2017

1,398,000

10 %

Required for the retail division:

1. Calculate the ending inventory to be reported on the balance sheet for each of the three years. NEED THIS PLEASE

2. Calculate the cost of goods sold and the gross margin for 2016. NEED THIS PLEASE

At the end of 2016 in the retail division, Devin runs a report that shows all products that have not sold at all in 2016. This report shows the following three products that have been discontinued by the manufacturer: Item L78 that cost $226 and 2 are on hand. Retail price $299 Item R56 that cost $65 and 6 are on hand. Retail price $99 Item B86 that cost $148 and 4 are on hand. Retail price $265 While investigating these items, we find out that for all of them, the sales crew has marked them down 25% but that has not resulted in sales. The lack of parts and support for discontinued models concerns most customers. In early January, 2017 - Devin marks down the models listed above at 50% off retail price. They put the items in a more prominent position in the store and promote them in the online catalog. Sales start to trickle in.

Required for 2016:

1. Calculate the loss from the application of LCM for Devin if they apply LCM to individual products as of December 31, 2016. NEED THIS PLEASE

2. Show the journal entry to record the loss calculated in 1 if necessary. NEED THIS PLEASE

3. Show the journal entry to sell all of items L78, R56 and B86 for cash in January and February, 2017. NEED THIS PLEASE

Homework Answers

Answer #1

solution:

here is the solution..Thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Devin Corp operates both a retail and wholesale division selling a line of submersible pumps. Both...
Devin Corp operates both a retail and wholesale division selling a line of submersible pumps. Both operations have significant inventory. For the retail division, Devin uses the retail weighted average inventory method and makes sure to apply it in a way that approximates the lower cost or market. In 2015, Devin had the following results in the retail division: Purchases at invoice cost   $680,000 and at the suggested retail value of $1,296,000 Purchase returns were $11,000 at cost and at...
Bonita Department Store converted from the conventional retail method to the LIFO retail method on January...
Bonita Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2017, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2018, management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years. Here is the available information. 1. The inventory at January 1, 2016, had a retail value of $56,800 and...
Sandhill Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of...
Sandhill Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,400 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, inventory would appear under...
Shania Twains Corporation began operations on January 1, 2017, with a beginning inventory of $31,000 at...
Shania Twains Corporation began operations on January 1, 2017, with a beginning inventory of $31,000 at cost and $50,000 at retail. The following information relates to 2017. Retail Net purchases ($109,000 at cost) $150,000 Net markups 10,000 Net markdowns 4,300 Sales revenue 126,900 Instructions (a)  Assume Shania Twains Corporation decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet. (b)  Without prejudice to your solution in part (a), assume instead that Shania Twains Corporation...
Question 1 Retail Inventory Method Uncle Butch's Hunting Supply Shop reports the following information related to...
Question 1 Retail Inventory Method Uncle Butch's Hunting Supply Shop reports the following information related to inventory: Cost Retail Beginning inventory $ 35,000 $ 92,000 Purchases 75,000 200,000 Net additional markups — 15,000 Net markdowns — (22,000) Goods available for sale $110,000 $ 285,000 Sales (178,000) Ending inventory at retail $ 107,000 Calculate Uncle Butch's' ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places. ____________________________________________________________________________________________________ Question 2 The...
Assume in each case that the selling expenses are $8 per unit and that the normal...
Assume in each case that the selling expenses are $8 per unit and that the normal profit is $5 per unit. Calculate the limits for each case. Then enter the amount that should be used for lower of cost or market. Selling Price Upper Limit Replacement Cost Lower Limit Cost LCM (a) $59 $ $43 $ $47 $ (b) 47 36 40 (c) 60 44 45 (d) 48 42 40 Viewpoint Company’s October 31 inventory was destroyed by fire. The...
Continuing Problem: Worksheet 2 Scenario: This problem is an adaptation of the Wholesale Workers Company problem...
Continuing Problem: Worksheet 2 Scenario: This problem is an adaptation of the Wholesale Workers Company problem from WORKSHEET 1. You can use your work from WORKSHEET 1 to assist you. Here, we are to assume that Wholesale Workers Company is a merchandising company and sells merchandise inventory. Consequently, Wholesale Workers Company now has the asset Inventory and will have Sales revenue rather than service revenue. The accounts and balances (after closing) at the end of their fiscal year March 31,...
Given the following, calculate the estimated cost of ending inventory using the gross profit method: Gross...
Given the following, calculate the estimated cost of ending inventory using the gross profit method: Gross profit on sales 30% Beginning inventory, January 1, 2017 $30,000.00 Net purchases $8,000.00 Net sales at retail for January $16,000.00 Complete this partial comparative balance sheet by vertical analysis. Round percents to the nearest hundredth. Column1 Column2 Column3 Column4 Column5 2016 2017 Assets amount percent amount percent Current assets: a. Cash $38,000 $35,000 b. Accounts receivable $19,000 $18,000 c.merchandise inventory $16,000 $11,000 d. prepaid...
Larkspur Inc. reported income from continuing operations before taxes during 2017 of $2,300,000. Additional transactions occurring...
Larkspur Inc. reported income from continuing operations before taxes during 2017 of $2,300,000. Additional transactions occurring in 2017 but not considered in the $2,300,000 are as follows. 1. A gain of $122,000 (pretax) as a result of selling securities from its investment portfolio. 2. A $24,000 loss before taxes as a result of operating the discontinued clothing division during 2017. 3. A loss of $70,000 before taxes as a result of disposing of its clothing division. Assume that this transaction...
Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is...
Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: Required October sales are estimated to be $310,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to...