Use Excel for solutions. Problem 8.7A Between The Ears (BTE. com) is a popular Internet music store. During the current year, the company's cost of goods available for sale amounted to $ 462,000. The retail sales value of this mer-chandise amounted to $ 840,000. Sales for the year were $ 744,000. Instructions A.
P6-3A Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20 600 units at $9 Aug. 12 300 units at $11 May 5 500 units at $10 Dec. 8 200 units at $12 Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost
Second, inc. Has the following information: Beginning inventory : $ 62,400 Material costs for June : 133,700 Conversion costs for June : 197,000 Beginning inventory June 12,000 units (80 % complete for material and 60% for conversions costs.) Started in June 40,000 units Finished and transferred during June 46,
1. The ending inventory of the Bonie Company is understated in Year One by $20,000. This error is not corrected in Year One or Year Two. What impact will this error have on total net income for Years One and Two combined? a. Understate total income by $20,000 b. No effect on total income for the two years c. Overstate total i
What is inventory control? Provide some examples of how inventory control is used.
In your opinion which one is the best approach for entities to use in terms of inventory management (FIFO or LIFO), and why?
Problem is attached Beagle Bum, Inc. operates 52 weeks per year and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials (RM), two work-in-process (WIP) items and two finished goods (FG). Last year's average inventory levels for these items along with their unit values
The Golden Corporation has collected the following information for its main product: Cost 18.00 Replacement cost 17.00 Estimated cost to sell 5.00 Selling price 30.00 A profit margin of 25 percent is considered normal for the product. In determining the value of its ending inventory, what unit value should Golden Corpo
Part I Lower-of-cost-or-market. The December 31, 2010 inventory of Gwynn Company consisted of four products, for which certain information is provided below. Replacement Estimated Expected Normal Profit Product Original Cost Cost Disposal Cost Selling Price on Sales A $25.00 $22.00 $6.50 $40.00 20% B $42.00 $40
Please help with this accounting assignment: For supply item LK, Boatman Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decis
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.
Blue Demon Company has the following inventory, purchases and sales data for the month of June 2008. Inventory: June 1 400 units @ $4.00 $1,600 Purchases: June 10 1,000 units @ $4.50 4,500 June 20 800 units @ $4.75 3,800 June 30 600 units @ $5.00 3,000 Sales: June 15 1,000 units Sales Price $8 each June 25 8
Please see the attached file (P4) for the problem, for the solution, please use the attached Excel document (CH_4_26A). P4-26A computing equivalent units for a second department with beginning inventory; preparing a production cost report and recording transactions on the basis of the report's information - weighed-average me
Larsen inc. uses 160000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $60. The cost of holding one unit of inventory for one year is $7.50. Currently Larsen places 40 orders of 4000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compu
FIFO method is used to account for its work-in-process inventories. Begin WIP inventory: Direct materials $900 Conversion costs $200 Current period cost Direct materials $12,000 Conversion costs $6,000 Quantity information: Begin Inventory 500 Units (60% complete as to materials) (53% complete as to
Part 1 Gross Profit Method Horton, Inc. suffered an inventory loss due to a flood. The following information is available to you. Beginning inventory $100,000 Net purchase 400,000 Sales 400,000 Inventory salvaged from flood 50,000 Instructions Use the gross profit method for estimating inventory to determine the lo
Calculate ending inventory and cost of goods sold using the dollar-value LIFO retail method. I have a Net Sales to customers of $650,000, Sales to employees (net of 30% discount) of $14,000. What do I have to do to get the actual net sales?
2. Hayes Electronics in Problem 1 assume with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters
Explain how inventory can act as a buffer in the production process. Discuss why it is sometimes prudent not to order the minimum level required to obtain a quantity discount.
1. Please select the right answer and explain in a few words why: In the buyer's records, the purchase of merchandise on account would: a. Increase assets and increase liabilities. b. Increase liabilities and increase paid-in capital. c. Increase assets and increase expenses. d. Have no effect on total assets. 2
FIFO and LIFO inventory calculation - see attached and provide missing information
Pontex Co. produces a variety of chemical products for use by synthetics manufacturers.The plant operates on two shifts, five days per week, with routine maintenance work performed on the third shift and on Sundays, as required. Pontex's new internal audit department has recently completed a series of audits and the comments
Please see the attached inventory information. (a) Why might Prab Robots, Inc., use two different methods for valuing inventory? (b) Comment on why Prab Robots, Inc., might disclose how its LIFO inventories would be valued under FIFO. (c) Why does the LIFO liquidation reduce operating costs? (d) Comment on whether Pr
Dell Company is selling the keyboard which sells direct to the customers. The average demand of keyboard is 8 per week The keyboard's cost is £20 each. The ordering cost is £50 per order. The holding cost is 20% per annum of the inventory value. The company works 52 weeks per year. Indeed, ABC Company orders 200 k
G) Gleason Corporation's fiscal year ends on December 31. Gleason determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked for your help in deciding if the following items should be included in the year-end inventory count. 1. Goods pu
Which of the following is a type of inventory shortage cost? A. Storage and tracking costs B. Insurance and taxes C. Restocking costs D. Losses due to obsolescence E. Opportunity cost of capital invested in inventory
21.The following information is available from the financial statements of Bluebird Enterprises for the years ended on December 31, 2004 and 2005: 2005 2004 Buildings $1,500,000 $2,250,000 Accumulated depreciation 550,000 660,000 Loss on sale of building in 2005 was $10,000. The book value of the building sold was $
Explain why the audit of work-in-process and finished goods inventory is generally more complex than the audit of purchased inventory?
1. Lower-of-cost-or-market. At 12/31/10, the end of Jenner Company's first year of business, inventory was $4,100 and $2,800 at cost and at market, respectively. Following is data relative to the 12/31/11 inventory of Jenner: Original Net Net Realizable Appropriate Cost Replacement Realizable Value Less Inventory
Olaf Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and Common Stock of $9,000. April 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30. 4 Sold merchandise on account $5,500