# ACC 422 Week 3 WileyPlus Assignment - Exercises

E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2011,consistsofthe following items.
Part No. Quantity Cost per Unit Cost to Replace per Unit
110 600 \$95 \$100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121a 1,600 16 14
122 300 240 235
aPart No. 121 is obsolete and has a realizable value of \$0.50 each as scrap.

Instructions
(a) Determine the inventory as of December 31, 2011, 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.

E9-12 (Gross Profit Method) 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 \$ 160,000
Purchases (gross) 640,000
Freight-in 30,000
Sales 1,000,000
Sales returns 70,000
Purchase discounts 12,000

Instructions
(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.

E10-5 (Treatment of Various Costs) 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 \$ 520
Architect’s fees 3,170
Cash paid for land and dilapidated building thereon 92,000
Removal of old building \$20,000
Less: Salvage 5,500 14,500
Interest on short-term loans during construction 7,400
Excavation before construction for basement 19,000
Machinery purchased (subject to 2% cash discount, which was not taken) 65,000
Freight on machinery purchased 1,340
Storage charges on machinery, necessitated by noncompletion of
building when machinery was delivered 2,180
New building constructed (building construction took 6 months from
date of purchase of land and old building) 485,000
Assessment by city for drainage project 1,600
Hauling charges for delivery of machinery from storage to new building 620
Installation of machinery 2,000
Trees, shrubs, and other landscaping after completion of building
(permanent in nature) 5,400

Instructions
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment.
Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded.

E10-12 (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to Impala Company.

(a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The market value of
this land is determined to be \$81,000.

(b) 14,000 shares of common stock with a par value of \$50 per share are issued in exchange for land
and buildings. The property has been appraised at a fair market value of \$810,000, of which
\$180,000 has been allocated to land and \$630,000 to buildings. The stock of Impala Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago
at \$65 per share, and a block of 200 shares was sold by another stockholder 18 months ago at
\$58 per share.

(c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead
the amounts properly chargeable to plant asset accounts for machinery constructed during the
year. The following information is given relative to costs of the machinery constructed.
Materials used \$12,500
Factory supplies used 900
Direct labor incurred 16,000
of machinery, excluding factory supplies used
Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost
Cost of similar machinery if it had been purchased from
outside suppliers 44,000

Instructions
Prepare journal entries on the books of Impala Company to record these transactions

### Related Questions

##### ESE 370 DQ 2 WK2...

Sensorimotor Integration Sensorimotor integration is fundamental to school success and learning. Think about the importance of sensorimotor integrati...

##### ESE 370 DQ 1 WK2...

Gender Differences in Learning Debate There are known differences in cerebral laterality between males and females. Although our brains are unique, s...

##### memo for ethic business course...

You have to do a Memo after reading the case in the attachment    Assume that Arthur Cunningham has asked your group to review the plan and budge...

##### Human Resource Unit I...

HR Mission Statement By now, from your textbook readings and lesson, you should have a firm grasp on the different types of human resource values and...

##### BOS 4010; Unit I PowerPoint Presentation...

Safety Management and Communication  Create a 7- to 10-slide presentation on the topic of Safety Management and Communication. You may use various...

##### Components of an Information System...

Components of an Information System In this one- to two-page (250-500 word) paper, you will discuss each of the different components of an informati...

##### Can Someone Help me with this??...

Each student will submit an eight- to ten-page paper (exclusive of title and reference page) on a topic from the list below. The student should be cre...

##### For Solutions Pro Only-social media and collaborat...

For your Portfolio Project you will utilize a Web 2.0 tool to apply and share knowledge gained during the course by producing a Technology Guide for D...

##### MBA 6301 Unit III...

Ethics in business relationships include both the external and internal relationships that develop around the organization. For this assignment, we wi...

##### Can this be done in 2-3 hrs step_tosh...

We all know that food-borne bacteria can make us sick.  But the bacteria that normally live in our digestive tract can do a lot to keep us healthy! ...

##### Business Negotiations (Relationships and Power in...

Consider a situation where you are negotiating with your boss for a higher salary. Discuss the role of relationship and power in the negotiation proce...

##### Assignment...

Application: Break-Even AnalysisWhen expenses and revenues are equal, this is known as the “break-even point” or BEP. To determine break-even, an...

##### Need done in 24hrs!!!! SERIOUS INQUIRIES ONLY!!...

Marketing Information and ResearchResearch QuestionDescribe an important question you need to answer or a problem you are trying to solve in order to...

##### Are all incidents preventable?...

Are All Incidents Preventable?Each student will explore, develop and express in a two to three page paper, their own thoughts and philosophy in regard...

##### Can this be done in 2-3 hrs...

We all know that food-borne bacteria can make us sick.  But the bacteria that normally live in our digestive tract can do a lot to keep us healthy! ...

##### Instructions: Show your work to get credit. Use th...

ASSIGNMENT NEEDS TO BE DONE @8:00PM CENTRAL TIME ON OCTOBR 07,2016. Fund Statistics Assignment # 4 Variability   Instructions: Show your work t...

##### a research paper for environment business...

The homework is a research paper, so I have that with a group to do but I have to do just one point it The research paper is to compare the state of...

##### Airvalue Airways Strategic Planning...

Airvalue Airways is a regional carrier whose strategy is to expand gradually as they can identify routes that offer an attractive return on the invest...

##### Math Assignment week 1...

1) As part of your course assignments, you will be required to keep a math journal detailing how the class concepts apply to your everyday life. Each...

##### Final exam...

Hi I have a final exam tomorrow and its about 14 hours ahead from now.. I have to take your phone number ( better if you have whatsupp ) and i will se...

##### An outstanding resume, cover letter and interview...

Task 1: Context:  When searching for a new job, most people know that they will need an outstanding resume, cover letter and interview. Did you kno...