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Inventory

Why ask the following topics at audit? What will you do with the information? Adjusting lower cost of market inventory on valuation Capitalizing interest on building construction Recording gain or loss on asset disposal Adjusting goodwill for impairment

Why ask the following topics at audit? What will you do with the information? Adjusting lower cost of market inventory on valuation Capitalizing interest on building construction Recording gain or loss on asset disposal Adjusting goodwill for impairment

Inventory Costing for Trina's Treasure Retailer

1. Trina's Treasure is a retailer that began operations in 2008. Below is a summary of its 2008 inventory activity. see attachment Calculate the 2008 cost of goods sold for Trina's Treasures 2. Scuba Scouts, Inc. a wetsuit merchandise store, began june with 50 wetsuits that cost $45 each in inventory. During June, the

Auditing: Design a proposal for appropriate controls for Apollo Shoes inventory.

Design a proposal for appropriate controls to cover inventory based on the Apollo Shoes case. View inventory tab on http://www.mhhe.com/business/accounting/louwers/apollo.html. Date: Sat, 31 DEC 2005 4:43:52 +0000 To: "Darlene Wardlaw" <dw@aow.cpa> From: "Bradley Crumpler" <TheCrumpler@Aow.cpa> Subject: Apollo Shoes In

Inventory costing comes in many different sizes. LIFO, FIFO, weighted average, and moving average are just some of the methods under US GAAP. Why do you think there are so many methods available under US GAPP (other than to keep accountants employed) and why would a company prefer one over the other?

Inventory costing comes in many different sizes. LIFO, FIFO, weighted average, and moving average are just some of the methods under US GAAP. Why do you think there are so many methods available under US GAPP (other than to keep accountants employed) and why would a company prefer one over the other?

LIFO inventory during June

During June, Prefer Hardware, which uses a perpetual inventory system, sold 920 units from its LIFO- base inventory, which originally cost $ 12 per unit. The replacement cost is expected to be $ 21 per unit. Prefer is reducing inventory levels and expected to replace only 640 of these units by December 31, the end of the fiscal

Tucker Lighting Company: Compute purchases budget, COGS, ending inventory

14-7. Tucker Lighting Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Tucker Lighting's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $8

inventory turnover

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than prior years. Provide three explanations that would be consistent with this observation. Explain whether these would be of concern to you and what the effect might be on next period's financial results.

Accounting Inventory problem

For Green Company 2006, what would be the cost of ending inventory using the FIFO and LIFO methods? Units Cost per unit Beginning inventory 400 $6.00 Purchases for 2006: 10-Apr 600 $8.00 24-Aug 800 $10.00 17-Oct 900 $12.00 Sales - October 27, 2006 2,100 @ $

Larsen Company inventory

Larsen Company is a manufacturer of car seats. Each car seat passes through the Assembly Department and Testing Department. This problem focuses on the Testing Department. Direct Materials are added when the Testing Department process is 90% complete. Conversion costs are added evenly during the Testing Department's process. As

Allowance to Reduce Inventory to LIFO account

Please help with the following problem. When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported Choose one answer. a. on the income statement in the Other Revenues and Gains section.

Manufacturing Overhead Assigned to products

You use a normal job order cost system, in which manufacturing overhead is assigned to products using a single monthly-predetermined moh rate based on direct labor cost. for the month of March, the budgeted moh rate is 300% of direct labor cost. Budgeted direct labor cost was $30,000. Beginning inventory was: Beginning work

Syrup production and inventory schedule Backwoods General Store.

The Backwoods General Store in Vermont sells a variety of outdoor clothing items and equipment, and several food products at its modern but rustic-looking retail store. Its food products include salmon and maple syrup. The store also runs a lucrative catalog operation. One of its most popular products is maple syrup, which is so

invigilation techniques for fraud

You are a fraud examiner who has been hired by Steinway Company to carry out an investigation. Steinway is a beverage company that has experienced increased shipments of beverages but no increase in revenue. Management suspects that inventory is being shipped to unknown places or is being stolen. How could you use invigila

Charles S. Lewis has just been named the CEO of Community Hospital, a 230-bed hospital located in an agricultural community of approximately 150,000 people. There is one other similar-sized hospital in the community. C.S. Lewis has been told by his CFO, J.R.R. Tolkein, that the hospital is in excellent financial condition, but Mr. Lewis is not convinced. He has requested and received the summary financial statements presented in Table 10-10. 226 CHAPTER 10 ANALYZING FINANCIAL STATEMENTS Table 10-10 Summary Financial Information of Community Hospital* (2003-2007) (Data in Thousands) 2003 2004 2005 2006 2007 Balance sheet accounts Cash & cash equivalents $ 34,402 $ 30,444 $ 45,848 $ 46,010 $ 73,711 Patient accounts receivable 39,506 38,878 35,444 38,853 35,647 Inventory 2,133 2,318 2,398 3,197 3,279 Gross fixed assets 187,278 221,548 240,988 256,652 276,458 Accumulated depreciation 73,227 79,523 89,324 101,007 113,851 Net fixed assets 114,051 142,025 151,664 155,645 162,607 Unrestricted capital funds 10,720 13,625 20,160 25,615 17,716 Total assets $ 238,365 $ 265,784 $ 276,965 $ 287,193 $ 311,140 Current maturities of LTD 111 1,794 1,431 2,211 1,143 Current liabilities $ 37,426 $ 38,492 $ 33,240 $ 31,699 $ 35,862 Long-term debt 2,032 12,821 11,720 9,578 9,570 Net assets $ 188,743 $ 204,262 $ 222,606 $ 237,022 $ 251,241 Income statement accounts Net patient revenue $208,861 $ 225,950 $ 244,976 $ 257,784 $ 282,461 Other revenue 1,569 1,756 1,929 2,170 1,757 Total operating revenue $ 210,430 $ 227,706 $ 246,905 $ 259,954 $ 284,218 Total operating expenses $ 203,043 $ 219,768 $ 233,867 $ 254,382 $ 278,629 Operating income 7,387 7,938 13,038 5,572 5,589 plus Non-operating revenue 6,806 7,579 8,971 8,430 8,696 Excess of revenue over expenses $ 14,193 $ 15,517 $ 22,009 $ 14,002 $ 14,285 Depreciation $ 10,588 $ 11,161 $ 11,659 $ 12,184 $ 12,524 Interest 115 611 471 419 392 *Please note that not all asset and liability items are shown. The totals do not, therefore, foot to the individual account values.

Charles S. Lewis has just been named the CEO of Community Hospital, a 230-bed hospital located in an agricultural community of approximately 150,000 people. There is one other similar-sized hospital in the community. C.S. Lewis has been told by his CFO, J.R.R. Tolkein, that the hospital is in excellent financial condition, but M

Inventory Balance of Altira Corp. using FIFO, LIFO, Average Cost

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2011 is available: Aug. 1 Inventory on hand?2,000 units; cost $6.10 each. 8 Purchased 10,000 units for $5.50 each. 14 Sold 8,000 units for $12.00 each. 18 Purchased 6,000 u

Examples of Inventory Control Methods

Calculate ending inventory, cost of goods, gross profit, and gross profit rate under each of the following methods LIFO, FIFO, and Average cost. Date Description Quantity Unit cost or Selling Price June  1 Beginning inventory 25 $60 June  4 Purchase 85  64 Ju

Inventory Turnover

Galaxy Corp has an average of 80 days of inventory on hand while the industry standard for inventory is 5. Is Galaxy better or worse than the industry? How many more (or fewer days of inventory does the company have on hand v. the industry. (round to nearest number of days)

Coastal Shores Inc estimated inventory loss due to Hurricane Fred

1) Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2011. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2011, to August 5, 2011, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selli

Accounting Theory and Research: Contrast inventory methods for types of TVs

Compare and contrast two of the following inventory valuation methods: first in - first out (FIFO), last in - first out (LIFO), or weighted average. Explain the benefits of each inventory valuation method you selected and how the inventory is valued. Playing devil's advocate, if a Best Buy type company were to use average co

Please help me with these chapter review assignments

Attach are some problems AP8-7A On January 1, 2011, Kloppenberg Company had Accounts Receivable $138,000, Notes Receivable $21,800, and Allowance for Doubtful Accounts $12,500. The Notes Receivable is From Sara Rogers Company. It is a 4-month, 11% note dated December 31, 20

Calculation of inventory turnover over ratios for Wal-Mart and Target

The following information summarized from the 2007 annual report of Wal-Mart Stores, Inc. Cost of sales for the year ended January 31: (in millions) 2007 $264,152 2006 $237,649 Inventories, January 31: 2007 33,685 2006 31,910 The following information summarized from the 2006 annual report of Target Corpora

Determine inventory cost using process costing

Determine inventory cost using process costing Problem 18-18A Determining inventory cost using a process cost system Mickel Company had 200 units of product in work in process inventory at the beginning of the period. It started 1,400 units during the period and transferred 1,200 units to finished goods inventory. The endin

Calculating EOQ and Minimum Cost

Ivonne Callen sells beauty supplies. Her annual demand is 1000 units. The cost of placing an order is $20, while the holding cost per unit per year is 10% of the cost. This item currently cost $10 if the order quantity is less than 300. For orders of 300 units or more the cost falls to $9.80. To minimize total cost, how many uni