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Accounting Topics: Bad Debt, Inventory Cost, Depreciation

1. On January 1, 2009, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $5,200. During the year, a total of $3,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2009, was $7,300. (a.) What was the total amount of bad deb

Discussing Inventory Cost Flow Methods

Question #1 - If you had the choice of selecting between any of the Inventory Cost Flow Methods in either a perpetual or a periodic inventory system which would you chose for the company you are working for (assuming that the company has inventories)? Please justify the reasons and circumstances for your choice. For example, i

Clayburgh Corporation: Compute and analyze inventory turnover

The following data are taken from Clayburgh Corporation's records for the years ended December 31, 2011, 2010 and 2009. 2011 2010 2009 Finished Goods inventory $60,000 $40,000 $30,000 Goods in process inventory $60,000 $65,000 $60,000 Raw materials inventory $60,000 $40

Acton Corp: Journal Entries for Inventory and Cost Accouts

Part A: The Acton Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Acton uses JIT production system and backflush costing with three trigger points for making entries in the accounting system: Purchase of direct materia

Calculating reorder quantity and reorder point

Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplie

Inventory costing methods (perpetual) - FIFO and LIFO

Can you help me get started with this assignment? Hemming Co. reported the following current-year purchases and sales data for its only product: Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beg. Inventory 133 units @ $11=$1,463 Jan. 10 Sales

Utley Inc: Comparative effects of the FIFO and LIFO inventory cost flow methods

The management of Utley Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2008 the accounting records show these data. Inventory, January 1 (10,000 units) $ 35,000 Cost of 120,000 units purchased 504,500 Selling price of 100,000 units sold 665,000 Operating exp

Journal entries in normal business cycle

1. ABC Co. started business on Jan 2010. On that day the company issued common stock in exchange for $50,000. Prepare the journal entry. 2. ABC CO. started business on Jan 2010. At the beginning of Jan, ABC paid $3,400 for supplies. 3. ABC sold watches costing the company a total of $63,000 to produce. Prepare the journal

Headstrong Hardware: Estimate the amount of Inventory lost in the fire

Please explain the equation and steps to find the number. Headstrong Hardware lost most of its inventory in an electrical fire that destroyed the company's warehouse and retail store. Fortunately, the accounting records were backed up on the owner's computer in her home office and could, therefore, be recovered. However, Head

One company having stock in another, Earnings, Dividends paid

Please read thoroughly. 13. Kramer Company has a substantial investment in Benz Company. Kramer Company accounts for this investment using the equity method. Kramer Company owns 60% of the Benz Company's stock, which was purchased for $150,000 in January of 2004. Given the following information for the Benz Company, what

Troy Company Monthly Budgets: Inventory, Purchases, Ratios

How do I calculate the budget ending inventory for each month? How do I calculate the ratio of ending inventory? Troy Company prepares monthly budgets. The current budget plans for a September ending inventory of 38,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budge

Inventory measurements for Capstone Company

Capstone Company uses a periodic inventory system. The company's ending inventory on December 31, 2009, its fiscal-year end, based on a physical count, was determined to be $911,007. Capstone's unadjusted trial balance also showed the following account balances: Purchases, $1,732,590; Accounts payable, $586,845; Accounts receiva

Perpetual method of tracking inventory

I need help answering the following discussion question: What is the perpetual method of tracking inventory? How is it different from the periodic method? Why would a company choose one method over the other? Which is the best method? Why?

Decision Case: Gap Inc.'s Inventory Note

Decision Case: Read and interpret Gap Inc.'s inventory note The 2008 annual report for Gap Inc. includes the following information in the note that summarizes the accounting policies. Merchandise Inventory Effective January 29, 2006 (the beginning of fiscal 2006) we changed our inventory flow assumption from the first

Periodic inventory system

INVENTORY types of inventory valuation. Elston Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made. Purchases Sales August 4 250 units at $13 August 7 150 units August 15 350 units at $15 August 11 100 units August 28 200

Inventory Issues: Intermediate Accounting

422. During periods of inflation this cost flow assumption will generally mean less reported profits and less taxable income. FIFO LIFO 423. The cost flow assumption that results in the recent costs being reported on the balance sheet is FIFO LIFO 424. The cost flow assumption where costs are expensed in the r

Inventory Accounts for Unsold Goods

Generally, the amount reported in the Inventory account will be the _________ of the unsold goods owned by the company. cost retail value Under the periodic system for inventory, the buyer will record the purchase of merchandise with a debit to this account. Inventory Purchases Sales Under the perpe

LIFO, FIFO, Average cost; Perioidic and Perpetual Methods

January 1, beginning inventory 45 units at $10 = $450 February 28 purchase 50 units at $11 = $550 June 15 purchase 50 units at $12 = $600 October 1 purchase 50 units at $12 = $600 December 29 purchase 50 units at $13 = $650 December 31, ending inventory 65 units at ?? Sales for entire year $2,680 consisting of 180 units

Intermediate Accounting 2 - Lifo, Fifo, And perpetual system

Ferris company began 2009 with 6000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2009 are as follows: Date of Purchase Units Unit Cost Total Cost 10-Jan 5000 $9 45000 18-Jan 6000 10 60000 11000 $19 105000 *includes purc

Financial Accounting (LIFO, FIFO)

Snoslope sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Snoslope's purchases of Xpert snowboards during September. During the same month, 118 Xpert snowboards were sold. Snoslope uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 In

Financial Accounting (LIFO, FIFO, Average Cost)

You have the following information for McHugh Inc. for the month ended October 31, 2010. McHugh uses a periodic method for inventory. Unit Cost or Date Description Units Selling Price Oct. 1 Beginning inventory 60 $25 Oct. 9 Purchase 120 26 Oct. 11 Sale 100 35 Oct. 17 Purchase 90 27 Oct. 22 Sale 60 40 Oct. 2

Asset sale/inventory profits

Need help answering these questions! 1. A subsidiary sold a depreciable asset to the parent company at a profit in the current period. Will the income assigned to the noncontrolling interest in the consolidated income statement for the current period be more than, less than, or equal to a proportionate share of the reporte