Shamrock Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Shamrock, has gathered the following data concerning inventory.
At May 31, 2017, the balance in Shamrockâs Raw Materials Inventory account was $456,960, and Allowance to Reduce Inventory to NRV had a credit balance of $27,660. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below.
Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Shamrockâs May 31, 2017, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle.
Cost Sales Price Net Realizable Value
Aluminum siding $78,400 $71,680 $62,720
Cedar shake siding 96,320 105,280 94,976
Louvered glass doors 125,440 208,768 188,496
Thermal windows 156,800 173,376 156,800
Total $456,960 $559,104 $502,992
Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2017. Balance in the Allowance to Reduce Inventory to NRV $______________
For the fiscal year ended May 31, 2017, determine the amount of the gain or loss that would be recorded (using the loss method) due to the change in Allowance to Reduce Inventory to NRV. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) The amount of the gain (loss) $__________________
Shamrock Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Shamrock, has gathered the following data concerning inventory.
At May 31, 2017, the balance in Shamrockâs Raw Materials Inventory account was $456,960, and Allowance to Reduce Inventory to NRV had a credit balance of $27,660. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below.
Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Shamrockâs May 31, 2017, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle.
Cost Sales Price Net Realizable Value
Aluminum siding $78,400 $71,680 $62,720
Cedar shake siding 96,320 105,280 94,976
Louvered glass doors 125,440 208,768 188,496
Thermal windows 156,800 173,376 156,800
Total $456,960 $559,104 $502,992
Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2017. Balance in the Allowance to Reduce Inventory to NRV $______________
For the fiscal year ended May 31, 2017, determine the amount of the gain or loss that would be recorded (using the loss method) due to the change in Allowance to Reduce Inventory to NRV. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) The amount of the gain (loss) $__________________
Related questions
1-Nash Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Nash, has gathered the following data concerning inventory. At May 31, 2017, the balance in Nashâs Raw Materials Inventory account was $456,960, and Allowance to Reduce Inventory to NRV had a credit balance of $27,660. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Nashâs May 31, 2017, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value Aluminum siding $78,400 $71,680 $62,720 Cedar shake siding 96,320 105,280 94,976 Louvered glass doors 125,440 208,768 188,496 Thermal windows 156,800 173,376 156,800 Total $456,960 $559,104 $502,992 -Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2017. Balance in the Allowance to Reduce Inventory to NRV $ and The amount of the gain (loss)$
2-The records for the Clothing Department of Novakâs Discount Store are summarized below for the month of January.
| inventory, January 1: at retail $24,600; at cost $17,000 | ||||||
| Purchases in January: at retail $138,400; at cost $94,259 | ||||||
| Freight-in: $9,100 | ||||||
| Purchase returns: at retail $3,000; at cost $2,300 | ||||||
| Transfers in from suburban branch: at retail $13,100; at cost $6,900 | ||||||
| Net markups: $8,000 | ||||||
| Net markdowns: $3,900 | ||||||
| Inventory losses due to normal breakage, etc.: at retail $300 | ||||||
| Sales revenue at retail: $95,400 | ||||||
| Sales returns: $2,400 Compute the inventory for this department as of January 31, at retail prices.
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