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Inventory

Cost of Goods Sold and Ending Inventory - FIFO Versus LIFO

Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold. Date Explanation Units Unit Cost Total Cost 1-May Inventory 30 $8.91 $267.30 15-May Purchases 25 $11.91 $297.75 24-May Purchases 35 $12.91 $451.85

Advantages and disadvantages of using a LIFO inventory system

Can you help me get started with this project? What are the advantages and disadvantages of using a LIFO inventory system? In what circumstances would you make the case for using LIFO? How do you feel about the IASB approach to LIFO compared to the FASB approach? Which is more appropriate and why? Reference:

Theoretical inventory

Explain what is meant by theoretical inventory and what its implications are for a manager.

Accounting for Perpetual Inventory Transactions

Information related to Steffens Co. is presented below. 1. On April 5, purchased merchandise from Bryant Company for $43,300 terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $1,059 on merchandise purchased from Bryant. 3. On April 7, purchased equipment on account for $31,690.

Which is best? LIFO, FIFO or Weighted Average

Financial Statements/ LIFO, FIFO and Weighted Average There are several different methods for measuring inventory cost flow on the financial statements - LIFO, FIFO, Weighted Average (forget physical flow). The purpose of the financial statements is to give investors information about the business, which of the flow methods

Eccles finished good inventory; Yimron ending WIP; Raulot

See attached file for proper format of the tables. 1. Eccles Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $383,000 and credited for $329,900. The ending balance in the Finished Goods

Shenkel Corporation: Calculate the Total Costs of Inventory

In September, one of the processing departments at Shenkel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $29,000. During the month, the cost of units transferred out from the department was $312,000. In the department's cost reconciliation report for September, the total c

Identify key reasons that organizations may need to hold inventories.

Identify key reasons that organizations may need to hold inventories. What factors may lead an organization to change the level of inventories that it holds? How could such a decision affect the other elements of working capital?You should choose examples from your own experience or find appropriate cases on the Web that you can

Tangier Industries: Report for choosing between LIFO and FIFO inventory methods

You have just been hired as a consultant to Tangier Industries, a newly formed company. The company president, John Meeks, is seeking your advice as to the appropriate inventory method Tangier should use to value its inventory and cost of goods sold. Mr. Meeks has narrowed the choice to LIFO and FIFO. He has heard that LIFO migh

Parson Valve Corp total Manufacturing cost; allocate total costs to inventory

The Parson Valve Corporation was recently formed to produce a brass valve that forms an essential part of a compressor manufactured by a major corporation. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. September is Parson's firs

After covering Lean Supply Chains, do we really need inventory?

After covering Lean Supply Chains, do we really need inventory? respond about inventory requirements needed to run a business. Make sure you check out this http://www.referenceforbusiness.com/management/Int-Loc/Inventory-Types.html Web Links before you attempt to answer this question.

FIFO, LIFO, Avg cost for Iowa Company under periodic

(Compute FIFO, LIFO, Average Cost - Periodic and Perpetual) Iowa Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,000 $

Interest on Note and Inventory Flows

On April 1, 2011, Hope Co. accepted a $5,000 face value note as evidence of a loan it made to Cannon Company. The note had a 12 percent interest rate and a on year-year term. What was the amount of interest revenue Hope recognized on the company's December 31, 2011 income statement? The following data apply to the next thre

Calculate inventory cost using FIFO, LIFO, average cost

Problem 1. Jan 1 Inventory 27 units at $120 Feb 17 Purchase 54 units at $138 July 21 Purchase 63 units at $156 Nov 23 Purchase 36 unit at $165 50 units of the item in the physical inventory at Dec 31. The periodic inventory system should be used to determine the inventory cost by: 1. The first in, first

Falwell Computing & Jones lifo fifo problems

Problem #5 On May 12, 2011, Falwell Computing sold computers to Computing Plus for $10,000, subject to terms 3/10, n/30. Falwell uses the net method of accounting for sales discounts. Required: a. Prepare the journal entry to record the sale. b. Prepare the journal entry to record receipt of the payment, assuming the

Carlson Auto Dealers, Inc: Calculate Inventory Cost

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the bginning of 2011, Carlson had three cars in inventory, as follows: Car ID Cost 203 $60,000 207 $60,000 210 $63,000 During 20

P 8-1 James Company periodic inventory system; prepare journal entries

James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: 1. The company purchased merchandise on account for $22,000 on October 12, 2011. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was ship

CPA 1-5 LIFO FIFO INVENTORY Here Co., Dixon Menswear Shop, Esquire Corp.

1. Here Co.'s inventory at December 31, 2011, was $1,500,000 based on a physical count priced at cost, and before any necessary adjustment for the following: ? Merchandise costing $90,000, shipped f.o.b. shipping point from a vendor on December 30, 2011, was received and recorded on January 5, 2012. ? Goods in shipping area we

Heartland Company's Expected Cost Savings for the Coming Year

Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $144,000,000 and $99,000,000 respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year, compute its expected c

Local Retailer Analysis

Consider a local retailer and analyze its inventory policy (as best you can). Make some determination of the retailer's policy on inventory levels, stock-outs, backorders, and safety stock. Provide reasons why you chose those policies for that particular retailer.

Craig Company asks you to review its December 31, 2007, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2007. 2. Not included in the physical count of inventory is $13,420 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Champy received it on January 3. 4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is $8,540 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. 6. Included in inventory was $10,438 of inventory held by Craig on consignment from Jackel Industries. 7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $10,520, and Kemp received the merchandise on January 5. 8. Excluded from inventory was a carton labeled â??Please accept for credit.â? This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.

Craig Company asks you to review its December 31, 2007, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2007. 2. Not included

Purchases, Inventory and Cost of Goods Sold.

Please help with the following problem. Determine the unit value that should be used for inventory costing following "lower of cost or market value" as described in ARB No. 43. CASE 1 2 3 4 Cost $2.35 $2.45 $2.25 2.54 Replacement cost 2.20 2.60 2.20 2.50 Ne

Auditing

You encountered the following situations during the December 31, 2007, physical inventory of Latner Shoe Distributor Company: a. Latner maintains a large portion of the shoe merchandise in 10 warehouses through - out the eastern United States. This ensures swift delivery service for its chain of stores. You are assigned alon