- 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
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
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
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:
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
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 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
Auditing: Audit Committee helps governance, Reliance on Internal Audit, Inventory, AR, AP audit steps for high risk
1. The external auditor can rely on the work of the internal auditor subject to certain conditions being met. One of this relates to the internal auditor reporting to the audit committee rather than to management. (i) Please explain as to why this is an important condition to be met (ii) Provide three benefits of the audi
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
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
Calculating a Production, Direct Materials and Static Budget when given projected sales and inventory levels.
3. Palermo Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in quarter 2; 15,000 in quarter 3; and 18,000 in quarter 4. Management desires to have an ending finish goods inventory equal to 25% of th enext quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2
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.
The Full Scope Evaluation Pre-Planning Inventory is a tool to assess the organizational readiness before planning and implementing an evaluation. Please review Effective Training A Case Study From the Oil & Gas Industry by Eliane T. Cullen (Attached in four parts). It is an examination of the steps for undertaking a training im
Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows: SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000 46,000 Kenner's ending inventory policy is that SR200 should
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
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
The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of $20,000.
18. The Lantern Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of $20,000. If the lanterns are re-machined for $5,000, they could be sold for $9,000. Alternatively, the lanterns could be sold for scrap for $1,000. Which alternative is more desirable and what are the total relevan
Analytical procedures: What might this indicate about the risk of misstatement with respect to inventory and inventory purchases?
In audit planning the audit of Construction Industry Resources, Inc., a building supply company. You have completed analytic procedures relevant to purchases and inventory. The results of these procedures are included in Figure 8-13. Analytical procedures show that inventory turnover decreased from 31-34 days to 27 days, and
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
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
Sam Houston Inc. was organized in late 2008 to manufacture and Sanitizing Hand Wipes. This was a response to the increase in the number of cases in America in the Fall of 2008. Most of the company's customers are Colleges and Universities. At the end of its fourth year of operation, the company has been fairly successful, as ind
6. A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the Last-In, First-Out inventory costing method, what is the amount of Cost of goods sold on the December 31 income statement? $
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?
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
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
Discuss whether or not you support the GAAP or IFRS approach to inventory. If you could propose a third alternative to reporting inventory, what would it be?
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
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