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FIFO and LIFO review

- Discuss whether or not you believe that LIFO is a fair inventory valuation method. - Identify three different businesses and then state whether they would benefit most from the FIFO, LIFO or Weighted Average approach to accounting for their inventories. State a reason with your answer. - Discuss what procedures a company may

Journal entries: inventory, note payable, salary, unearned revenue

Prepare the following adjustments in good journal entry format. (a) The beginning balance of the Supplies account was $315. During the month the company bought additional supplies in the amount of $830. At the end of the month a physical inventory showed $568 of unused supplies. (b) The company has a Note Payable in the am

Inventory Cost Flow Methods

Accounting - Cost Flow Methods Which of the following three cost flow methods (FIFO, LIFO, Average) results in (1) the highest ending inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement? Additional information: Beginning Inventory 1,500 @ $7 March 5

Cost Flow Methods: FIFO and LIFO

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement? (1) (FIFO or LIFO) produces the highest inventory amount, $ =(how much) (2) (FIFO or LIFO) produces the highest cost of goods sold, $= (how much) Additional information:

Accounting Information System - Inventory Table

Please see the attachment. Using Excel, create an inventory table from the data in Table 1 below. Also include an Amount field and a Priority field. Both are calculated columns. Amount equals Inventory times Price. Create a Priority Code table in the range I1: J6 using the data shown in Table 2. Use the VLOOKUP function t

FiFO and LIFO Inventory

Wilmington Corporation reported the following in its 2009 annual report: 2008 2009 Inventories $ 87,200 $102,500 Accounts Payable $30,000 $38,800 Cost of products sold $300,000 Wilmington measures its inventory on a LIFO basis. The fo

Evaluating Evidence

Evaluating Evidence Gathering a combination of evidence helps auditors adequately evaluate risk. As an auditor, you will evaluate the evidence that has been gathered on Anthony's Orchard's inventory. Review the audit objectives and the substantive test procedure that was performed. Identify if the evidence can be classifie


1. Inventory and cost of goods sold figures prepared under the LIFO cost flow assumption versus the FIFO cost flow assumption can differ dramatically. a. Would an analyst consider ending inventory asset value more useful if computed using LIFO or FIFO? b. Would an analyst consider cost of goods sold more useful if comput

Inventory Methods - LIFO and FIFO

Thank you! K. Co. uses LIFO inventory method. At the end of the 2006 accounting period, the company reported $10,000 of net earnings on I/S. The inventory balance on the 2006 B/S is $7,000. In the footnotes, LIFO's reserve at the end of 2006 is $3,000 and LIFO's reserve at the end of 2005 is $2,500. JJ Co. uses FIFO and repor

Accounting: Calculating Inventory Costs and Equivalent Units

Horngren 9th Edition Chapter 17 Question P17A-11A Amy Electronics makes CD players in three processes: assembly, programing, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly throughout the process. The assembly department had no work in process inventor

Kanban Card-Inventory

Applying your basic understanding of inventory control parameters, explain the factors that should influence the size of the kanban card, and the number of kanban cards that should be used for a given item.

EOQ Computation for Salesworthy Sprokets Company

The Salesworthy Sprokets company purchase a sprocket flange used in the manufacture of aircraft door hinges directly from the supplier. Salesworthy's hinge production line, which is operated at a constant rate, will require 1,000 flanges per month throughout the year (....12,000 per year). if the administrative cost of placing

Production & Inventory

For this case read the article below concerning connecting the factory floor to the intranet/internet. This seems to be an effective way to manage an organization's inventory. When it comes to inventory control how will putting its factory floor on-line benefit an organization? Factory Floors Go Online: Pioneering manuf

Inventory costing system for the following businesses

Please pick the best inventory costing system for the following businesses. Answer ___Klein Co. a custom jewelry manufacturer ___Friday-Nite-Fuel, a company that makes a variety of energy drinks. ___Langley & Sons, PLLC, a small law firm specializing in criminal defense cases. ___Taggart, Industries; a manufacturing com

How did Mr. Mandoff keep his new investments at such a high rate of return and keep paying off investors and giving to charities? How was he able to do what he did financially for so long?

12. How does the FIFO method differ from the average costing method of process costing system? Provide an example of FIFO. 13. You own Widgets 'R Us and are preparing your year-end financial statements. a) What inventory system do you use and why? What are its advantages and disadvantages? b) What activities should yo

Axe Company's work-in-process inventory

The following debits (credits) appeared in Axe Company's work-in-process inventory account for the month of March 2009: March Description Amounts 1 Beginning Balance $2,000 31 Direct Materials $12,000 31 Direct Labor

Which inventory model is best suited for a small bakery?

Develop an inventory plan for a small German bakery. It sells different types of breads, rolls, pastries and cakes. What inventory model is best suited, is it ABC or EOQ. How to set-up an inventory plan, and what information is needed to do the ABS or EOQ calculations?

ACC 403 Module 2 SLP 2 Correction to sales and to inventory

One client had indicated that they were interested in purchasing $35,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase. The bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did

Inventory Costing and Valuation

The acquisition cost of inventory remaining at the end of a period is measured using LIFO, FIFO, or average cost. a.) Rank cost of goods sold, gross profit, and ending inventory from highest to lowest under the three cost-flow assumptions when input prices are rising. b.) How should differences between acquisition cost and

Perpetual vs periodic inventory systems

Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically? What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of mer

Inventory Supply Integration

This plant addition has a number of unique ion and heat exchangers that are connected by a maze of pipe spools, small bore piping, valve and pumps. There is also a fair amount of structural steel required to hang all of these components and a lot of concrete work to anchor the steel as well as build walls at various places. In r