Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements are correct? Cost is greater than NRV is greater than net realizable value replacement cost A. Yes Yes B. No
42. The use of LIFO during a long inflationary period can result in: A. A net increase in income tax expense. B. An inflated balance sheet. C. Significant cash flow advantages over FIFO. D. A reduction in inventory turnover over FIFO.
50. Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the following year. As a result, Prunedale's cost of goods sold for this year was: A. Overstated by $94,000
E9-19 (Retail Inventory Method) Presented below is information related to Ricky Henderson Company. Cost Retail Beginning inventory $ 200,000 $ 280,000 Purchases 1,375,000 2,140,000 Markups 95,000 Markup cancellations 15,000
Sweet Baby Jane's Bakery has a plant for processing Deluxe breakfast rolls and wants to better understand its capability. Determine the design capacity, utilization, and efficiency of the plant when producing its Deluxe rolls given the data here. Last week the facility produced 148,000 rolls. The effective capacity is 175,000
1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the debts of the business. c. is owned by its stockholders. d. has tax advantages over a proprietorship or partnership. 2. Which of the following is the most appropriate and
Inventory records for Herb's Chemicals revealed the following: March 1, 2009, inventory - 1,000 gallons @ $7.20 = $7,200 Purchases: Sales: Mar. 10 - 600 gals @ 7.25 Mar. 5 - 400 gals Mar. 16 - 800 gals @ 7.30 Mar. 14 - 700 gals Mar. 23 - 600 gals @ 7.35 M
Your Uncle Larry has entered all of his video game collection data into an Excel workbook. He took your advice and used headings to organize the information. He now wants to have the information sorted in the fields Name, Date Purchased, Purchase Price, Color, Size, and Location for each of his video games. In addition, his wife
P6-7A This information is available for the Automotive and Other Operations Divisions of General Motors Corporationfor 2004. General Motors uses the LIFO inventory method. (in millions) 2004 Beginning inventory $10,960 Ending inventory 11,717 LIFO reserve 1,442 Current assets 55,515 Current liabilities 74,892 C
The following data concerning the retail inventory method are taken from the financial records of Stone Company. Cost Retail Beginning inventory $ 49,000 70,000 Purchases 224,000 320,000 Freight-in 6,000 - Net markups -
Judith Thompson is the manager of the student center cafeteria. She is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the
A company has decided to order 360 units whenever the on-hand inventory falls to 100 units. There appears to be no seasonal fluctuation to the demand, but it does fluctuate daily and is approximately normally distributed. Historically, the lead time has been four days, and the average sales during this four day period are 80 uni
Haley, Inc. makes coffee tables. Each table needs 28 pounds of lumber to make. The sales forecast for March is 1,600 tables. Estimated beginning and desired ending inventories for March are: Tables --- Estimated Beginning Inventory = 500 Tables --- Desired Ending Inventory = 720 Lumber (pounds) --- Estimated Beginning Inve
A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. Period 1 2 3 4 5 6 Requirement 7 8 9 11 12 7 Costs associated with operations are as follows: Wages = $2,000 per worker per month Hiring cost = $1,000 per worker Layoff cost = $1,500 per
The following information is available concerning Stillwater Inc.: Units Unit Cost Beginning inventory 200 $10 Purchases: March 5 300 11 June 12 400 12 August 23 250 13 October 2 150 15 Stillwater, which uses a perpetual system, sold 1,000 units for $22 each during the year. S
See the attached problem file. Determine the proper balance in the allowance to reduce inventory to market at May 31, 2007. For the fiscal year ended May 31, 2007, determine the amount of gain or loss that would be recorded due to the change in the allowance to reduce inventory to market.
(Compute FIFO, LIFO and Average Cost?Periodic and Perpetual) Some of the information found on a detail inventory card for David Letterman Inc. for the first month of operations is as follows. From data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only
Easy E company has an ending inventory at end-of-year prices of $100,000 at Dec. 31, 2005; $123,200 at Dec. 31, 2006; and $134,560 at Dec 31, 2007. The year-end price indexes were 100 as 12/31/06; 110 at 12/31/07, and 116 at 12/31/07. Compute the ending inventory for 2005 through 2007 using the dollar-value LIFO method.
(Lower-of-Cost-or-Market) The market value of Lake Corporation's inventory has declined below its cost. Vickie Maher, the controller, wants to use the allowance method to write down inventory because it more clearly discloses the decline in market value and does not distort the cost of goods sold. Her supervisor, financial vice-
Have the recent turbulent economic conditions had an effect on inventory valuation? How are companies handling, or should handle, these issues?
Can you help me get started with this assignment? (Dollar-Value LIFO) Presented below is information related to Dino Radja Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2004 $ 80,000 100 December 31, 2005 115,500 105 December 31, 2006 108,000 120 December 31, 2007 122,200 130 December
In preparing closing entries a. each revenue account will be credited. b.each expense account will be credited. c. the Retained Earnings account will be debited if there is net income for the period. d. the Dividends account will be debited. The closing entry process consists of closing a. all asset and liability account
The following information is available for October for Horton Company. Beginning inventory $100,000 Net purchases 300,000 Net sales 600,000 Percentage markup on cost 66.67% A fire destroyed Horton's October 31 inventory, leaving undamaged inventory with a cost of $6,000. Using the gross
Kiner Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $4.20 Purchase, March 7 350 units @ $4.40 Purchase, March 16 70 units @ $4.50 Inventory, March 31 130 units (a) What is the value assigned to ending inventory if Kiner uses LIFO? (b) What is the value assign
(Please show works and formulas) 2a. Running Inventory Ramsey's Green Acres sells custom made horse blankets. Fall & winter are strong months for blanket sales. Each blanket is considered a unit. Units sold are anticipated to be: # of Month Units October 200 November 400 December 800 January 600 2000 Total u
See the attached file. Princess Retail Stores started doing business on January I, 2005. The following data reflect its inventory purchases and sales during the year: (see the attachment for the data) Required: 1. Compute gross margin and cost of ending inventory using the periodic FIFO cost flow assumption. 2. Compute
Question: What is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why. Describe in words the journal entries that are made in a perpetual inventory system when inventory is sold on credit.
Jedi Company imports a chemical called RS2D from Aleraan. It processes R2D2 into three products in a joint process. These products are Solo, Reti and Nym. The following facts apply to July 2009: (see attachment) a. Allocate the joint costs of the three products using the estimated NRV method b. Calculate the value of the endin
I Understand most of the flow but i am having some difficulty pleale complet and help me check my work. MUST COMPLET ALL FOR CREDIT. PAGE 3636 Student objective page 363 E8-1 Sue Ernesto is the owner of Ernesto's Pizza. Ernesto's is operated strictly on a carryout basis. Customers pick up their orders at a counter where
Describe the kinds of inventory that Wal-Mart holds. What are the costs associated with each kind of inventory?