Beruflich Dokumente
Kultur Dokumente
(a) $330,820.
(b) $340,020.
Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 9-1
9-2
Lots
No. of Price Per
Sales
Lot SalesTotal
Price Relative
Price Sales Cost
Total toAllocated
LotsCost No.
(Cost
Cost
of Allocated/
Lots)
Per Lot
9 $3,000 $ 27,000 X
$27,000/$127,800$89,460 $18,900 $2,100
X
15 4,000 60,000 $60,000/$127,800 89,460 42,000 2,800
X
17 2,400 40,800 $40,800/$127,800 89,460 28,560 1,680
$127,800 $89,460
Gross
Number Lot
Cost Sold
Cost of Proft
Sold* Sales
of Lots Per Lots $ 3,600
9,600
4 $2,100 $ 8,400 $12,000
10,800
8 2,800 22,400 32,000
$24,000
15 1,680 25,200 36,000
27 $56,000 $80,000
* 49 5 =
15
8 7=
17
15 2 =
Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)
Chairs Chairs
No. of
Number of
Chairs
Chairs Sold
Group 1
Group 2
Group 3
Total
Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)
9-3
EXERCISE 9-10 (1520 minutes)
(b) The drop in the market price of the commitment should be charged to
operations in the current year if it is material in amount. The following
entry would be made:
The entry is made because a loss in utility has occurred during the
period in which the market decline took place. The account credited in
the above entry should be included among the current liabilities on
the balance sheet, with an appropriate footnote indicating the nature
and extent of the commitment. This liability indicates the minimum
obligation on the commitment contract at the present timethe
amount that would have to be forfeited in case of breach of contract.
(c) Assuming the $10,800 market decline entry was made on December
31, 2014, as indicated in (b), the entry when the materials are received
in January 2015 would be:
Raw Materials....................................................................
97,200
Estimated Liability on Purchase Commitments............. 10,800
Accounts Payable.................................................... 108,000
9-4 Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)
EXERCISE 9-10 (Continued)
This entry records the raw materials at the actual cost, eliminates the
$10,800 liability set up at December 31, 2014, and records the contrac-
tual liability for the purchase. This permits operations to be charged
this year with the $97,200, the other $10,800 of the cost having been
charged to operations in 2014.
30%
= 23.08% of sales.
100% + 30%
Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 9-5
Approximate inventory, May 31 (at cost) $102,644
9-6 Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)
EXERCISE 9-18 (Continued)
(c) 1. Method 3.
2. Method 3.
3. Method 3.
Copyright 2013 John Wiley & Sons, Inc.Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 9-7