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Inventory

Calculate and explain inventory turnover, accounts receivable turnover

- How is inventory turnover calculated? - Explain how inventory turnover affects the amount of cash that must be invested in inventory. - How is accounts receivable turnover calculated? - Explain how accounts receivable turnover affects the amount of cash that must be invested in accounts receivable. - Assuming that

Gross profit/ending inventory and Schedule of Cash Receipts

Gross profit and ending inventory A corporation produces a product with following costs as of July 1, 2011. Material $2 per unit Labor $4 per unit Overhead $2 per unit Beginning inventory at these costs on July 1st was 3,000 units. From July 1 to December 1, 2011 the corporation produced 12,000 units. These units had a ma

Job Order Costing System: Compute WIP Inventory

Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing o

Cost of Direct Materials, Goods Completed, WIP Inventory

Goodson Corporation assembles various components used in the telecommunications industry. The company's major product, a relay switch, is the result of assembling three parts: XY634, AA788, and GU321. The following information relates to activities of April: Beginning work-in-process inventory: 4,000 units, 75 percent compl

Periodic and perpetual inventory systems and inventory costing methods

See attached file for proper format of the table. P. 2 periodic inventory system and inventory costing methods The inventory of Product PIT and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system. Apr. 1 Beginning inve

Accounting Concepts of Classification, Balances, Cash Balance

See attached file for proper format of tables. 1. For each of the following, indicate whether the transaction affects a revenue account, an expense account, the Retained Earnings account or the Common Stock account. 1. Made an investment to start the business. 2. Billed customers for services performed. 3. Paid monthly re

Finding the Cost of Inventory

Donnelly Manufacturing sells cedar birdhouses. The company has prepared the following forecast for the third quarter of 2009: July 5,000 units August 6,000 units September 10,000 units Inventory at June 30, 2009 was budgeted at 1,000 units. Management would like the desired quantity of fi

Inventory methods and adjusting entries

P10-8 (Nonmonetary Exchanges) Susquehanna Corporation wishes to exchange a machine used in its operations. Susquehanna has received the following offers from other companies in the industry. 1. Choctaw Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance fo

Method resulting in the highest inventory

In a period when inventory costs are rising, the inventory method that most likely results in the highest ending inventory is: 1. Lower-of-cost-or-market method. 2. Average cost. 3. FIFO. 4. LIFO.

Comprehensive Receivables Problem; Dollar-Value LIFO

P7-10 (Comprehensive Receivables Problem) Connecticut Inc. had the following long-term receivable account balances at December 31, 2006. Note receivable from sale of division $1,800,000 Note receivable from officer 500,000 Transactions during 2007 and other information relating to Connecticut's long-term rec

Estimate Inventory on Hand to Determine the Amount of Theft Loss

An inventory taken the morning after a large theft discloses $55,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 $84,000 Purchases received, March 1-11 $70,000 Sales (goods delivered to customers) $104

Inventory Using FIFO and LIFO

Compute inventory and cost of goods sold using FIFO and LIFO Andrea's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. information relating to Andrea's purchase of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Andrea's uses a periodic inven

Compute Press Corporation Depreciation

3. Press Corporation purchased a truck for $40,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $4,000 at the end of that time. During the first year, the truck was drive 27,500 miles. Compute the depreciation for the first year under each of the following methods: (a

Whether the Item Should be Included in Ending Inventory

For each of the transactions,specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. See attached file.

FIFO and LIFO are explicated.

FIFO and LIF0 Analyze the following scenario: The Hospital for Ordinary Surgery uses pharmaceuticals for its patients. It started the year on January 1, with an inventory of 1,000 doses of an antibiotic drug that cost $17 per dose. On January 2, it purchased another 300 does for $21 each. From January 3 through June 30 it u

Request for Proposal (RFP) for catalog seed company

I sell seeds from a catalog, and business is good. However, my inventory tracking system is not adequate. When busy we have seen supply outages and customers complain about delays. I worry about the business folding unless something is done and soon. I want to hire a management consultant to design a new inventory tracking sys

Sample of inventory cost flow assumptions

See the attached Excel worksheet. Complete the worksheet and answer the following questions: Which inventory cost flow assumption produces the most net income? Which inventory cost flow assumption produces the least net income? And why between these two answers. Which inventory cost flow assumption produces the highest

LIFO/FIFO

Model Inventory Purchase Invoices Inventory Costs Jan 1 1st 2nd 3rd Dec 31st BB900 27 at $213 21 at $215 18 at $222 18 at $225 30 C911 10 at 60 6 at 65 2 at 65

PV and Inventory problems

Problem #1 Sales are $112,000 COGS are 88% Gross Margin $ are: $13,440 I think this is correct-----please confirm Problem #2 Expense for January are $140,000 This expense is expected to increase 1.5% each month for the next 6 months What is the cumulative expense on June 30 140,000 x (1.015)^6 140,000 x 1.09344912

Dollar LIFO for Norman Television

Norman's Televisions produces television sets in 3 categories: portable, midsize , and flat-screen. On Jan 1, 2010, Norman adopted dollar value LIFO and decided to use a single inventory pool. Jan 1 inventory is: Category Quantity cost per Unit Total Cost Portable 6,000