Explore BrainMass


Cash, receivables, or inventory

Which of the following is the most important for an organization to manage: cash, receivables, or inventory? Defend you answer. How can different accounting methods impact an organization's net income?

Comparative condensed income statements

I am having a bit of difficulty figured this problem out. I shall post it below and if I could have assistance figuring out the comparative condensed income statements that would be wonderful. Thank you in advance for your assistance. (See attached file for full problem description)

Jim's Music Company: LIFO for inventory

Jim's Music Company uses LIFO for inventory, and the company's profits are quite high this year. The cost of inventory has been steadily rising all year, and Jim is worried about his taxes. You are Jim's accountant and you suggested that the company make a large purchase of inventory to be received during the last week in Decemb

Accounting work that deals with treasury stock, Fifo and Lifo

1. A company uses the FIFO inventory method and reports the following data for 2004: Beginning Inventory $75,000 Purchases during 2004 300,000 Ending Inventory 100,000 Income before income taxes 80,000 Tax Rate 40% If the company had used LIFO ending inventory would have been valued at 85,000 dollars a. Compute the


93. A co. EOQ is 100 widgets, and it maintains a 50 unit safety stock. Which of the folowing is the co. average. 100 units 60 57.07 12.25 75

Cost accounting issues 11688 Q ACC

Question 16 (1 point) The relevant activity base for a cost depends upon which base is most closely associated with the cost and the decision-making needs of management. ? True ? False Question 23 (1 point) Because variable costs are assumed to change in constant proportion with changes in the activity leve

Computation of cost of inventory and the cost of goods

E4-16 In June, Naperville Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchases 300 6 1,800 23 Purchases 500 7 3,500 30 Inventory 150 Instructions (a) Compute the cost of the ending inventory and the cost of goods

Travel Warehouse - Journalizing Entries

P4-1A Travel Warehouse distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of July, Travel's inventory consisted of 40 suitcases pur-chased at $30 each. During the month of July the following merchandising transactions occurred. July 1 Purchased 50 suitcases on acco



Cost flow, FIFO LIFO

2. Cost-flow assumptions-FIFO and LIFO using periodic and perpetual systems. The inventory records of Cushing, Inc., reflected the following information for the year ended December 31, 2004: # of unit Unit Cost Total Cost Inventory, January 1 . .


I would like someone to check my math and methodologies related to the following problem and identify any errors in my methodology and thought process. Here is the data: Purchased $600,000 in 2000. Purchased $3,000,000 during 2001. Operating expenses (excluding management bonuses) are $400,000, and sales are $6,000,000.

Financial statements

Attached are four spreadsheets (in one excel file) - please answer all questions contained therein. Thanks. Example (Question 1): Presented below (see attachment) is financial information for two different companies. Determine the missing amounts.


1. A small, local, food store stocks kiwi fruit. In the past 50 weeks, the store has experienced the following weekly demand for mangoes: Week! Demand Frequency (number of mangoes) (weeks) 20 10 25 30 40 50 60 10 The food store buys the kiwi fruit from its supplier for $2.00 e


1) Why are consigned goods not included in the physical inventory counts? 2) Why are goods that are not physically present included in the physical inventory count? 3) What impact does FOB shipping point and FOB destinations have on revenue recognition? 4) Which inventory costing meth

Finacial statements

1. What are the similarities and differences between periodic and perpetual inventory systems? 2. What types of companies use periodic inventory systems? 3. What types of companies use perpetual inventory systems? 4.. What are the basic journal entries used to record inventory transactions? 5. What are the diffe

Work In Process Inventory; Overhead Volume Variance; Capital Investment

Use the following to answer questions 22-23. Morningstar Corporation produces decorator wall coverings. Budgeted production is 480,000 square feet per month, and the standard direct labor requirement to make this amount is 12,000 hours. All overhead is allocated based on direct labor hours. Morningstar's management is inte


1. The raw materials used by a manufacturing company are properly classified as an inventory asset until what point in time? a. The date on which the invoice for the materials is paid.. b. The date on which the completed final products containing the materials is sold to the customer. c. The date on which the materials are

Transaction Journals (Perpetual Inventory System)

Britt Jewelers had the following transactions in April. Prepare journal entries for these transactions assuming Britt Jewelers uses a perpetual inventory system. Apr. 2: Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Britt paid the freight bill amounting to $2,000. Ap

Cost of inventory

From the excel document, the inventory records for jippy juice company rasperry juice cans a) assuming a periodic inventory system, determine the cost of the ending inventory and the cost of goods sold using (i) FIFO (ii) Weighted average cost and (III) LIFO methods b) Assuming a perpetual inventory system, determine the

Periodic inventory systems are discussed.

Subject: What is the difference between perpetual and periodic inventory system? Details: 1//03 beginning inventory 50 units @ $30 2/22 purchase 70 @$33 3/7 sale(sold) (100) 4/15 purchase 90 @ 35 6/11 purchase 140@ 36 9/28 sale (100) 10/13 Purchase 50@ 38 12/4 sale (100)

Accounting statements of the firm have inflated inventory

I have a problem to solve: I am the newly named CEO of a large Fortune 500 company. This company has been publicly traded on the NYSE for many years and is well known with the average investor. The company is currently having a difficult time with its earnings. I have discovered that the accounting statements of the firm ha

What are the costs assigned using Average Cost, FIFO and LIFO?

Compute the cost to be assigned to ending inventory for each of the methods indicated, given the following information about purchases and sales during the year (see attached). a. Cost assigned on an average cost basis b. Cost assigned on a FIFO basis c. Cost assigned on a LIFO basis

Cost Accounting - General Ledger - purchases/overhead/invertory

The following account balances as of January 1, 2008, were selected from the general ledger of Browning Manufacturing Company: Work in process inventory $0 Materials inventory 521,000 Finished goods inventory $44,000 Additional data: 1) Actual manufacturing overhead for January amounted to $59,000. 2) Total direc

Inventory cost.

3. Consider a DAG supermarket selling chicken noodle soup manufactured by the Campbell Soup Company. Customer demand for chicken noodle soup is R cans per year. The price Campbell charges is $C per can. DAG incurs a holding cost rate of {see attachment}. The ordering cost is $K per order. Using the EOQ formula, DAG normally orde

Financial Accounting : LIFO and FIFO - Application Problem

The management of Congo Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2002, the accounting records show the following data. Inventory, January 1 (10,000 units) $35,000 Cost of 110,000 units purchased 478,000 Selling price of 95,000 units sold 665,000