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# Inventory

### S9: Compute the cost of ending inventory using FIFO, LIFO, weighted average cost

The inventory record for Item S9 reveals the following for Year 4. The firm uses a periodic inventory system. Units Per Unit Cost Total Inventory, January 1, Year 4 1,800 1.60 2,880 Purchases: February 18 600 1.68 1,008 May 2 900 1.72 1,548 July 26 1,500 1.80 2,700 September 29 1,200 1.84 2,208 December 3 1

### Stock issue, asset purchase, inventory, rent, subscriptions

Prepare journal entries for each of the following unrelated transactions. You may omit explanations for the journal entries. a. A firm issues 5,000 shares of \$2 par value common stock in exchange for \$20,000 cash. b. A firm acquires a building with an appraised value of \$100,000 for \$30,000 cash and the assumption of a 25-ye

### Inventory errors & valuation of receivables

What are the basic issues involved with the valuation of receivables? Why are inventory errors so critical? This should be explained in detail.

### Digby's product Deal: Compute production amount for inventory

Deal is a product of the Digby company. Digby's sales forecast for Deal is 2012 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.)

### Novi Co: Ending inventory under FIFO, LIFO and WAC

Novi Co was formed in December 1, 2006. The following information is available from Novi's inventory record for product x: Units Unit cost Jan 1, 2007 1,600 \$18.00 beg. inventory Purchases: 1/5/07 2,600 \$20.

Present, in journal form, the adjustments that would be made on July 31, 2007, the end of the fiscal year, for each of the following (provide calculation as well): 1. The supplies inventory on August 1, 2006 was \$7,350. Supplies costing \$20,150 were acquired during the year and charged to the supplies inventory. A count on Ju

### Financial Statement Effects of Cost Flow Methods

Can you help me get started with this assignment? Chapter 6: E6-9 PAGE 272 (SO 5 PAGE 255) E6-9 Delhi Hardware reported cost of goods sold as follows. Compute inventory and cost of Determine effects of inventory errors. (SO 5) E6-6 Zambia Company reports the following for the month of June. Delhi made two errors: (1

### 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

### Sellco Cost flow assumptions: FIFO, LIFO, and weighted average

Cost flow assumptions- FIFO, LIFO, and weighted average using a periodic system: The following data are available for Sellco for the fiscal year ended on January 31, 2009: Sales.......................................... 1,600 units Beginning Inventory ..........................500 units @ \$4 Purchases, in chronological o

### Sandy Alomar: Prepare two schedules for inventory costs under LIFO and FIFO

You are vice-president of finance of Sandy Alomar Corp., a retail company that prepared 2 different schedules of gross margin for the first quarter ended March 31, 2007. These schedules appear below: Sales (\$5 per unit) cost of goods sold gross margin Schedule 1 \$150,000 12

### Character of taxable gain for inventory distributed to Terry

True/False 8. Terry received a proportionate share of partnership inventory in complete liquidation of her partnership interest. If Terry holds the distributed property as a capital asset for six years and sells it for a gain, the gain is taxed as a long-term capital gain.

### Hampton Company had the following inventory balances at the beginning and end of the year:

Hampton Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Raw material \$ 50,000 \$ 35,000 Work in process 130,000 170,000 Finished goods 280,000 255,000 During the year, the company purchased \$100,000 of raw material and spent \$340,000 on direct lab

### Inventory problem/questions

Need help with this problem about inventory: Quantity Cost per pound Total Costs 1/1 Purchased 1,200lbs \$2.20 \$2,640 1/7 Purchased 2,200lbs \$2.25 \$4,950 1/14 Purchased 2,800lbs \$2.28 \$6,384

### Dependent-demand inventory

In what ways do independent-demand inventories differ from dependent-demand inventories?

### 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:

### Production Cost Report memo to May Mahr to explain equivalent units of inventory

Mary Mahr 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 has had a history of n

### Risk of material misstatement: implications for revenue and inventory based on audit assertions.

5-34 (Risk of material misstatement) Your client, a manufacturer of computer components, has experienced slowing demand for its product. Recently, it cut back from three shifts a day to two shifts a day, and the company has eliminated the backlog of orders that existed in prior years by providing financing to customers. Newspape

### MCQ: Job order cost system, fininished goods inventory, over/under applied overhead

1. For which of the following businesses would the job order cost system be appropriate? a) Meat processor b) Automobile manufacturer c) Oil refinery d) Construction contractor 2. Which of the following costs are NOT included in finished goods inventory? a) Direct labor

### Study questions: leverage, unit cost, variable costing, absorption method, inventory

See attached file. The following data relate to a company that produces and sells a travel guide that is updated monthly: Each book sells for \$20.00. The company sold 8,000 books in June and 10,000 books in July. The degree of operating leverage for July is closest to: 4.48 3.48 4.22 8.70 A m

### 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

### Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of \$4,000. This transaction would

1. Able Company pays its employees twice a month, on the 7th and the 21st. On June 21, Able Company paid employee salaries of \$4,000. This transaction would a. Increase Stockholders' Equity by \$4,000. b. Decrease the balance in Salaries Expense by \$4,000. c. Decrease net income for the month by \$4,000. d. Be

### Surprise Company's sales budget showed expected sales of 13,400 widgets. Beginning finished goods contained 1,200 widgets. The company determined that 14,100 units should be produced. How many widgets will the company have on hand at the end of the year?

Surprise Company's sales budget showed expected sales of 13,400 widgets. Beginning finished goods contained 1,200 widgets. The company determined that 14,100 units should be produced. How many widgets will the company have on hand at the end of the year? A) 500 B) 1,200 C) 1,900 D) 700

### PERIODIC INVENTORY SYSTEM

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

### Fifo and Lifo Income Statements

I can not figure out how to create a condensed income statement. Please help me. The following information is presented: Sales 21,000 units @ \$50 Inventory January 1 6,000 units @ \$20 Purchases 6,000 units @ \$22 10,000 UNITS @ \$25 7,

### The company you work for has agreed to pay a vendor for inventory received in 30 days.

The company you work for has agreed to pay a vendor for inventory received in 30 days. The cash needed to pay for the inventory plus operating expenses for the next 30 days usually comes from collections on accounts receivable. You have just been informed by a customer that he will not be able to pay his balance due for 60 day

### Total gross requirements

Fifty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts How many units does each have? A B C D E A is dependent of B(2) which is dependent of D A is also dependent of C(3) which is dependent of D and E(2)

### Desired ending inventory of raw material

Hannah company plans to sell 40,000 units of product X in June and each of these units requires 4 square feet of raw material. The pertinent data is as follows: Product X Raw Material Actual June 1 inventory 5,500 18,000 sq. Feet Estimated June 3

### Sales Budget for The Bing Corporation

The Bing Corporation had 3,000 units in finished-goods inventory on December 31. The following data are available for the upcoming year: January February Units to be produced 9,400 10,200 Desired ending finished-goods inventory 3,300

### Inventory Costing Methods: Periodic System

The following information is available concerning the inventory of Carter Inc.: Units Unit Cost Beginning Inventory 200 \$10 Purchases: March 5 300 11 June12