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Cost of Goods and Ending Inventory

Milokimball Company had a beginning inventory on January 1 of 100 units of Product WD-44 at a cost of $21 per unit. During the year, the following purchases were made. Mar 15 300 units at $24 Sept 4 300 units at $28 July 20 200 units at $25 Dec 2 100 units at $30 700 units were sold. Milokimball

Table chart on inventory affects of credit purchase and cash

Because of the possibility that Calliope might open an online bookstore, it is important to understand how inventory would be reported in Calliope's books and accounts. What are the allowable methods for recording inventory? How does each method affect the expense of cost of goods sold, and consequently, tax expense and net inco

Evaluation of internal controls-raw materials and supplies inventory

16-26 (Evaluation of internal controls-raw materials and supplies inventory) The Jameson Company produces a variety of chemical products for use by plastics manufacturers. The plant operates on two shifts, five days per week, with maintenance work performed on the third shift and on Saturdays as required. An audit conducted b

Inventory Costing Method and Inventory Method

1. Golf Away Corporation is a retail sport stores carrying golf apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory has continually increased in the past two years. In the first year of operations, the store assigned inventory costs using

Schilling Limited

Please see attached file. Problem 6-1A Schilling Limited is trying to determine the value of its ending inventory as of February 28, 2007, the company's years end.. The accountant counted everything that was in the warehouse, as of February 28, which resulted in an ending inventory valuation of 48,000. However, she didn't

Sherper Co.

This information relates to Sherper Co. 1) On April 5 purchased merchandise from Newport Co. for $22,000, terms 2/10, n/30 2) On April 6 paid freight costs of $900 on merchandise purchased from Newport Co. 3) On April 7 purchased equipment on account for 26,000. 4) On April 8 returned some of April 5 merchandise to n

Inventory Valuation and the Effect on Profit.

As officers of One-Hundred-Percent Vitamin Co., Sally and Ed have hired you as an outside accountant to advise them on how the accounting treatment can affect their revenues and expenses. The accounting issues of interest include cash versus accrual basis of accounting, inventory costing methods, inventory valuation methods, lea

Income Summary and Inventory

After doing all of the closing entries, with the exception of the entry to close the dividends account, the Income Summary Account has a Credit balance of $17, 600. What does this number represent? Would the answer change depending on the inventory method that we were using?

Consolidated Inventory Value

Some multiple choice from the text Advance Accounting-Hoyle, Shaefer, Doupnik pag-79 and 80. Choose the best answer, please. 11 and 12- are based in the following information Hampstead Inc. haa only three assets: Book Value Fair Value Inventory........................... $110,000 $150,000 La

Balance Sheets with LIFO consideration

Your company is considering the possible acquisition of ABC Company. Financial statements of ABC Company follow. Balance Sheet. 2004 2003 Assets Current assets: Cash $64,346 $11,964 Accounts receivable less

Grant Company

Questions 64-65 and 66-68 Use the following information for questions 64-65. The income statement and balance sheet columns of Grant Company's work sheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $50,000

An auto shop performs a monthly inventory count for auto parts it carries.

An auto shop performs a monthly inventory count for auto parts it carries. Assume 30 days per month. Determine the number of auto parts that should be ordered using the following information: (10 points) Average daily demand: 20 units Standard deviation of demand: 25 units/month Desired service probability: 98% Current inv

Inventory - Staley Watch Company

For your convenience, I have attached a formatted MS Excel spreadsheet containing the solutions to the inventory problems of the Staley Watch Company, with a detailed income statement data for the 2-year reporting period posed in the origianl question.

Inventory - FIFO, LIFO, Average for Eddings Company

Compute FIFO, LIFO and Average. Please give detailed explanations on how/why each answer was found. Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20 600 units @ $9 Aug. 12 300 units @ $11 May 5 500 units @ $10 Dec. 8 200 units

Inventory Issues and Reorder Point

The demand for barbeque grills has been fairly large in the past several years, and Morrison's Home Supplies, Inc., usually orders new barbeque grills five times a year. It is estimated that the ordering cost is $60 per order. The carrying cost is $10 per grill per year. The lead-time is 12 working days. Furthermore, Morrison's

Installment Sale and Loss of Inventory

Problem 1. Tappan industrial sells machinery on the installment plan.On September 1 2005, Tappan entered into an installment sale contract with Western Productions for a six year period. Equal annual payments under the installment sale are $187,500 and are due on August 31 of each year beginning in 2006

Change in Principle?Inventory Methods

E22-2 (Change in Principle?Inventory Methods) Holder-Webb Company began operations on January 1, 2005, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2008. The following information is available for the years 2005-2007. Net Income Computed Using Average Co

Inventory Model - Western Outfitters

Western Outfitters is a prominent manufacturer of casual denim clothing in Durango, Colorado. The denim used daily in their manufacturing process to produce jeans is normally distributed with an average of 3,000 yards of denim and a standard deviation of 600 yards. The lead time to receive an order of denim cloth from Long Isl

Inventory Costing Methods - Advance Products, Inc.

Advance Products, Inc. has just organized a new division to manufacture and sell specially designed tables for mounting and using personal computers. The company's new plant is highly automated and thus requires high monthly fixed costs, as shown in the schedule below: Manufacturing costs: Variable costs per unit:

Cost of Sales and Inventory - Marks Manufacturing Company

Please see the attached file.... I have filled out a template for the items listed, but am unsure of the outcome. Can you advise? Thank you. Marks Manufacturing Company has the following beginning balances: Materials inventory $100,000 Work in process $370,000 Finished Goods

Inventory Problems - Metro Life Insurance Company

1. The office manager for the Metro Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3.00 per box, and ordering costs are $28.00. The following discount price schedule is provided by the office supply comp

Inventory methods -mba program

Electronic Heaven, Inc., sells electronic merchandise, including a personal computer offered for the first time in September, which retails for $695. Sales of this personal computer for the next six month period (ending February 28) totaled $52, 125. Purchase records indicate the following on the amounts purchased and prices and

decomposed roe, fifo and lifo

1. In 1995 Chrysler has a return on equity of 20 percent, whereas Ford's return is only 8 percent. Use the decomposed ROE framework to provide possible reasons for this difference. 2. In a period of rising prices, how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inven

Accounting Problems: inventory, R&D, fixed assets, goodwill

1 What are the differences between the periodic and the perpetual methods for tracking inventory? What are some advantages and disadvantages to each method? 2 Describe the differences between the FIFO and LIFO methods of inventory valuation. What might be some reasons a company would pick one method over another?