Exercise 1
E.9.14, Rasheed Wallace Co kehilangan sebagian besar
inventory nya saat terjadi kebakaran pada bulan Desember
sebelum dilakukan penghitungan fisik inventory akhir
tahun. Dari catatan akuntansi perusahaan diperoleh data :
Beginning inventory
$ 170,000 Sales
$ 650,000
Purchases for the year $ 390,000 Sales return $ 24,000
Purchase return
$ 30,000
Rate of gross margin on net sales 40 %
Merchandise dengan harga jual $ 21,000 dapat
diselamatkan dari kebakaran tersebut. Merchandise yang
rusak karena terbakar dengan original selling price sebesar
$ 15,000 memiliki net realizable value sebesar $ 5,300.
Instruksi :
Hitung jumlah kerugian akibat kebakaran tersebut dengan
asumsi perusahaan tidak menutup asuransi.
Answer of Exercise 1
Beginning inventory
Purchases
Purchase returns
Total goods available
Sales
Sales returns
Net sales
Less gross profit (40% X $ 626,000)
$
$
$
$
$
$
$
$
$
170,000
390,000
560,000
(30,000)
530,000
650,000
(24,000)
626,000
(250,400)
$ 375,600
Estimated ending inventory (unadjusted for damage) $ 154,400
Less goods on hand—undamaged (at cost)
($ 21,000 X (1 – 40%))
$ (12,600)
Less goods on hand—damaged (at net realizable value) $ (5,300)
Fire loss on inventory
$ 136,500
Exercise 2
P.9.3, Mary Stuart Co, menetapkan ending inventory nya at
cost dan at lower of cost or market pada 31 Desember
2003, 2004 dan 2005 sebagai berikut :
Year
Cost
Lower of Cost or Market
31-12-2003 $ 650,000
$ 650,000
31-12-2004 $ 780,000
$ 722,000
31-12-2005 $ 900,000
$ 830,000
Instruksi :
a.Buat jurnal yang dibutuhkan per 31-12-2004 dan 31-122005, dengan asumsi menggunakan perpetual inventory
system dan direct method of adjusting to market
b.Buat jurnal yang dibutuhkan per 31-12-2004 dan 31-122005, dengan asumsi menggunakan perpetual inventory
system yang dicatat at cost dan dikurangi dari market
dengan menggunakan allowance account (indirect method).
Answer of Exercise 2
a. Direct method
31-12-2004
Cost of Goods Sold
$ 58,000
Inventory
$ 58,000
31-12-2005
Cost of Goods Sold
$ 70,000
Inventory
$ 70,000
b. Indirect method
31-12-2004
Loss Due to Market Decline of Inventory $ 58,000
Allowance to Reduce Inventory to Market $ 58,000
31-12-2005
Loss Due to Market Decline of Inventory $ 12,000
Allowance to Reduce Inventory to Market $ 12,000
[($900,000 – $830,000) – $58,000]
Exercise 3
P.9.6, The records for the Clothing Department of Magdalena
Aguilar’s Discount Store are summarized below for the
month of January :
Inventory, January 1
: at retail $ 25,000, at cost $ 17,000
Purchases in January
: at retail $ 137,000, at cost $ 86,500
Freight in
: $ 7,000
Purchase returns
: at retail $ 3,000, at cost $ 2,300
Purchase allowances
: $ 2,200
Transfers in from suburban branch : at retail $ 13,000, at cost $ 9,200
Net markups
: $ 8,000
Net markdowns
: $ 4,000
Inventory losses due to normal breakage etc : at retail $ 400
Sales
: at retail $ 85,000
Sales returns
: $ 2,400
Instruction :
Compute the inventory for this department as of January 31,
at (a) retail and, (b) lower of average cost or market.
Answer of Exercise 3
(a)
Inventory (beginning)
Purchases
Freight-in
Purchase allowances
Purchase returns
Transfers-in from suburb branch
Cost
$ 17,000
86,500
7,000
(2,200)
(2,300)
9,200
$ 115,200
Retail
$ 25,000
137,000
(3,000)
13,000
172,000
8,000
180,000
(4,000)
(400)
Markups (net)
Markdowns (net)
Inventory losses due to breakage
Sales
Sales returns
Net sales
Ending inventory at retail
Cost-to-retail ratio = $ 115,200= 64 %
$ 180,000
$ (85,000)
2,400
(b) Ending inventory at lower of average cost or market
$ 59,520
(82,600)
$ 93,000
(64 % x $ 93,000) =