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Receivable Transactions and Differences in Inventory

What are two methods of recording accounts receivable transactions when a cash discount situation is involved? Which is more theoretically correct? Which is used in practice more of the time? Why? What is the difference between a perpetual inventory and a physical inventory? If a company maintains a perpetual inventory,

Wolf Company adopted the dollar-value LIFO method on January 1, 2007...

Can you help me get started on this assignment? A. Wolf Company adopted the dollar-value LIFO method on January 1, 2007, at which time its inventory consisted of 6,000 units of Item A @ $5.00 each and 3,000 units of Item B @ $16.00 each. The inventory at December 31, 2007 consisted of 12,000 units of Item A and 7,000 units of

Harsco: FIFO and LIFO inventory valuations; change in net income

Part of the inventory footnote, taken from Harsco Corp.'s 2006 financial statements, is available below: Other information: Inventories valued on the LIFO basis at December 31, 2006 and 2005 were approximately $36.5 million and $41.8 million, respectively, less than the amounts of such inventories valued at current costs.

Compute FIFO, LIFO, and average cost

Hull Company's record of transactions concerning part X for the month of April was as follows. Purchases April 1 (balance on hand) 100 @ $5.00 4 400 @ 5.10 11 300 @ 5.30 18 200 @ 5.35 26 600 @ 5.60 30

Inventory Flows: Toy Elmo Company

Inventory flows for Toy Elmo Company for the month of January are as follows: # of Units Unit Cost Beginning inventory* 250 $1.00 Purchases: January 3 100 $1.10 January 15

Cost of ending inventory, wages for a foreman, cost of goods sold

I just want to make sure I understand these questions. Thanks a big one. ------------ 1. Management accounting practices: a. are more restrictive than financial accounting practices. b. focus on the business as a single unit. c. must be objective in nature. d. do not necessarily use standard accounting system

Calculate inventory using FIFO, LIFO and weighted average

Please help me understand how the Inventory methods are calculated: Inventory methods George Company was formed on December 1, 2006. The following information is available from George 's inventory record for Product A. Units Unit Cost January 1, 2007 (beginning inventory) 1,600 $18.00 Pu

Important information about Inventory valuation

John Adams Company's record of transactions for the month of April was as follows. Purchases April 1 (balance on hand)600 @ $6.00 4 Â 1,500 @ 6.08 8 Â 800 @ 6.40 13 Â 1,200 @ 6.50 21 Â 700 @ 6.60 29 Â 500 @

Accounting Conventions and Inventory Valuation

A telecommunications equipment company has used the Last-In, First-Out (LIFO) method adjusted for lower of cost or market for a number of years. Due to falling prices of its equipment, it has had to adjust (reduce) the cost of inventory to market each year for two years. The company is considering changing its method to First-in

Internal controls for physical count of inventory

Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, Original work published 1976). (Wild, 2007, page 599 ) Describe the internal controls that must be applied when taking a physical count of inventory.

Perpetual Inventory System

Prepare an Excel file with the following journal entries, assuming a perpetual inventory system: Washington Company engaged in the following transactions: July 2 purchased merchandise on credit from Zapala Company, terms 2/10, n/30, FOB destination, invoice dated July 1, $2,000. The entry is Merchandise Inventory

Inventory Control - Calculate Safety Stock

I need to verify the solution of the following problem. Mr Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $6 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1

Inventory accounting for Bush Company

1.) Clinton, Bush, and Bush Company (CB2) Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2009, the accounting records provided the following information for product UNITS UNIT COST Inventory- 4,000 $12

Ross White's machine shop

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cos

Ending Inventory, Contribution Margin, and Net Income

Question 19: A company has fixed manufacturing costs of $400,000 and produces 100,000 units and sells 85,000 units. There is no beginning inventory. Which of the following conclusions can be drawn? A Variable costing income will be $60,000 higher than full costing income. B Full costing income will be $60,000 higher th

Profit, Income, Sales Revenue, Ending Inventory, and Break-Even Point

Question 7: On Company and Off Company report the following results: Both companies increase sales next year by $500,000. Which company will have the higher profit next year? A Neither; both companies will have the same profit. B On will have higher profit ($100,000 greater than Off). C Off will have higher profit ($1

Computing Cost of Goods Available and Ending Inventory

23. The following information is available for Torino Corp. for its most recent year: Net sales ............................................. $3,600,000 Freight-in ............................................ 90,000 Purchase discounts .................................... 50,000 Ending inventory ..........................

Camel Corporation: Free Cash Flow, DuPont, EPS, Inventory

Camel Corporation's financial Statements Balance Sheet 2008 2009 assets 7,282 57,600 cash 632,160 351,200 account receivable 1,287,360 715,200 inventories 1,926,802 1,124,000 total current assets 1,202,950 491,000 gross fixed assets 263,160 146,200 less accumulated depreciation 939,790 344,800 net fixed assets

Use of accounting equation, Gomez increase or decrease, LIFO

1. Use the following information to calculate for the year ended December 31. Supplies $1,000 Operating expenses $12,000 Accounts payable $9,000 Accounts receivable $3,000 Beginning Stockholders' $5,000 Equity Revenues $23,000 Cash $15,000 Dividends $1,000 Notes payable $1,000 Equipment $

Inventory Cost Basis adjusted for inflation using the CPI

A total of 80,000 units were sold during the first quarter. The current cost per unit was $2.10 on December 31, 2000 and $2.40 on March 31, 2001 Use the current cost basis, compute the first quarter of 2001 1. Ending Inventory 2. Cost of Goods Sold Calculations Items Units Price

Allocating Costs in a Process System

See the attached file. Allocating costs in a Process Costing System. Moreno Corporation, a manufacturer of diabetic testing kits, started November production with $75,000 in beginning inventory. During the month, the company incurred $420,000 of materials cost and $240,000 of labor cost. It applied $165,000 of overhead co