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
An accounting intern for a local CPA firm was reviewing the financial settlements of a client in the eletronics industry. The intern noticed that the client used the FIFO method of determing ending inventory and cost of goods sold. When she asked a colleague why the firm used FIFO instead of LIFO, she was told that the client
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
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
(FIFO, LIFO and Average Cost Determination) LoBianco Company's record of transactions for the month of April was as follows. Purchases Sales April 1 (Balance on hand) 600 @ $6.00 April 3 500 @ $10.00 4
1. Under what circumstances would a company need to estimate its inventory? What are the differences between using the gross profit method and retail inventory method for estimating inventory? Which method of estimation, gross profit or retail inventory, is best? Explain your answer. 2. What are the criteria for capitalizatio
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
Manufacturers use three inventory accounts. Materials inventory Work in Process Inventory Finished goods inventory Explain what costs each contain.
O'Connor Video Center accumulates the following cost and market data at December 31. Inventory Categories Cost Data Market Data Cameras $12,500 $13,400 Camcorders 9,000 9,500 DVDs 13,000 12,800 Comp
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
The work-in-process inventory account of a manufacturing firm shows a balance of $3,000 at the end of the accounting period. The job cost sheets of two incomplete jobs show charges of $500 and $300 for materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predeter
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
Obsolete Inventory Armstrong Corporation manufactured bicycles parts. The company currently has a $21,000 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $9,000, or modified for $12,000 and sold for $22,300. 1. Which of the data above are relevant to the dec
During the taking of physical inventory, the controller intentionally withheld several inventory tags from the employees responsible for the physical count. After the auditor left the client's premises at the completion of the inventory observation, the controller recorded nonexistent inventory on the tags and thereby significan
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?
Comparing cost of goods sold in a perpetual system?FIFO, LIFO, and average-cost methods Assume that a JR Tire Store completed the following perpetual inventory transactions for a line of tires: Beginning inventory 16 tires @ $ 65 Purchase 10 tires @ $ 78 Sale 12 tires @
Express Lane, a regional convenience store chain, maintains milk inventory by the gallon. The first month's milk purchases and sales at its Freeport, FL, location follows: Nov 2 1 gallon @ $2.00 each 6 2 gallons @ $2.10 each 13 2 gallons @ $2.20 each 14 The store sold 4 gallons of milk to a custom
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
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 not
Obsolete Inventory Armstrong Corporation manufactured bicycles parts. The company currently has a $21,000 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $9,000, or modified for $12,000 and sold for $22,300. 1. Which of the data above are relevant to the dec
How does the choice of inventory valuation method affect the amount of net income reported by a company?
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?
Describe inventory and provide some examples of inventory you have seen in your experience? How does inventory affect a firm's financial performance? Provide and example of service inventory?
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