Explore BrainMass


Accounting problem dealing with company's per unit cost of inventory purchases

Can you help me get started with this assignment? If a company's per unit cost of inventory purchases increased during the year yet cost of goods sold as a % of sales revenues was lower than the prior year, then the current year a) gross margin as a % of sales revenues must have decreased b) sales price per unit must have

Process improvement opportunities & work-in-process inventory

1) Give some examples of process improvement opportunities within your organization or one with which you are familiar. How would you implement these improvements? What would be the benefits? What would be the risks? What are some of the more common elements of risk in managing a project? How can risk be mitigated? 2) How doe

On May 1, 2007, 3,000 shares of common stock were issued.

The following questions are ones that I am unsure of. I need this to study for my final. It is multiple choice but I want to be confident I have the correct answers to study with. My final is Monday so if I can get this answered by Sunday it would be great. Thank you. The following data are provided:

First in First out, Last in Last out

Please help with the following problem. Provide step by step calculations. The beginning inventory and purchases of an item for the period were as follows: Beginning inventory 6 units at $73 each First purchase 10 units at $72 each Second purchase 18 units at $74 each Third purchase 10 units at $75 each The compan


PERIODIC INVENTORY SYSTEM. I only need assistance with the PERIODIC INVENTORY SYSTEM portion of this assignment. THe portion in red ONLY. Please explain the attached problem. I am having a hard time getting this one and I really need assistance. QS 5-1: Prepare journal entries to record each of the following purchases

Perpetual and Periodic Inventory Systems

1/1 Beginning Inventory 1,000 Units @ $10 per Unit 3/15 Purchase of Inventory 3,500 Units @ $12 Per Unit 7/21 Sale of Inventory 4,000 units 9/12 Purchase of Inventory 1,600 Units @ $14 per unit 10/31 Sale of Inventory 1,200 Units. A. Using LIFO, what is the Cost of Goods Sold uning the Perpetual Method? What is

Calculating the current ratio and adjusting for the LIFO reserve

I need help in understanding how to calculate the current ratio based on inventory as reported using LIFO and calculating the current ratio after adjusting for the LIFO reserve based on the information below. (in millions) 2004 Beginning inventory $ 10,960 Ending inventory 11,717 LIFO reserve 1,442 Curre

Explaining Production Costs Using Equivalent Units in Ending Inventory

Scenario: Mary Mahr (Larry Lair) has recently been promoted to production manager, and so she has just started to receive various managerial reports. One of the reports she has received is the production cost report that you prepared. It showed that her department had 1,000 equivalent units in ending inventory. Her department ha

EOQ, Reorder point, and Safety stock

Alexis Co. uses 800 units of a product per year on a continuous basis. The product has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a) calculate the EOQ

Trucking Company: Inventories with known demand; monthly carrying cost

1) A trucking company maintains an inventory of trucks that varies monthly. The ending inventory of trucks during the first 8 months of the year (January to August) were 26, 38, 31, 22, 13, 9, 16, 5, respectively. The monthly inventory holding cost is proportional to the monthly ending inventory. Trucks incur the followin

Bondholder exchange, Beehive inventory entries, Rerun Company dividends

1. Convertibility allows a bondholder to exchange: a)subordinated debentures for unsubordinated debentures b)debentures for secured debt c)bonds for common stock d)All of these answers are correct. 2. The Beehive Company acquired merchandise inventory costing $10,000 on September 1. The company will n

Georgia Company: inventory, common stock, increase cash, cash flows

1. Georgia Company's beginning and ending inventory amounts were $150,000 and $140,000, respectively. Cost of goods sold was $670,000. Georgia Company purchased ________ of inventory. a)$680,000 b)$670,000 c)$660,000 d)an indeterminable amount 2. Which of the following could be used as account ti

Valuation of inventories

1. During 2007, which was the first year of operations, Luther Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the f

Inventory and costs classification, discounts, interest

1. Which of the following is correct? a. Selling costs are product costs. b. Manufacturing overhead costs are product costs. c. Interest costs for routine inventories are product costs. d. All of these. 2. All of the following costs should be charged against revenue in the period in which costs are incurred except for

Calculate Quantity Discount for Inventory and EOQ

The inventory manager has typically ordered a quantity of 800 each time an order is needed for one of their popular tires to take advantage of the discount provided by the supplier and save the company money. The following discount schedule has just been received reflecting recent changes in the discount percentages. The manag

Entries effect on the accounting equation: prepaids, inventory, revenue

1. The ________ adjusting entry increases expenses and increases liabilities. a) prepaid rent b) wages c) depreciation d) revenue received from customers in advance 2. The acquisition of inventory on open account will: a) increase assets and liabilities b) increase liabilities and decrease st

Elgin inventory entries; Hemingway beginning liabilities calculations

1. Elgin Company purchased $4,000 of inventory, paying cash for 25% of the purchase, with the remainder on account. Elgin Company should: a) debit Cash for $1,000, debit Accounts Payable for $3,000, and credit Inventory for $4,000 b) debit Cash for $1,000, debit Note Payable for $3,000, and credit Inventory for $4,00