# ﻿UOP ACC 422 Week 3 WileyPLUS Assignment

## ﻿UOP ACC 422 Week 3 WileyPLUS Assignment

﻿UOP ACC 422 Week 3 WileyPLUS Assignment
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ACC 422 Week 3 WileyPLUS Assignment
Exercise 9-1

The inventory of Oheto Company on December 31, 2013, consists of the following items.
Part No.

Quantity

Cost per Unit

Cost to Replace per Unit
110

620

\$126

\$133
111

1,140

80

69
112

580

106

101
113

230

226

239
120

450

273

277
121

1,650

21

19
122

330

319

313

Part No. 121 is obsolete and has a realizable value of \$0.7 each as scrap.

(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.
(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Exercise 9-12

Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1

\$ 171,000
Purchases (gross)

655,400
Freight-in

31,400
Sales

1,057,500
Sales returns

82,500
Purchase discounts

12,990

(a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.

Exercise 10-5
Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.

Abstract company’s fee for title search

\$1,752
Architect’s fees

10,683
Cash paid for land and dilapidated building thereon

310,040
Removal of old building

\$67,400

Less: Salvage

18,535

48,865
Interest on short-term loans during construction

24,938...