Explore BrainMass


Effect of the Year-End Purchase on Income Tax

A manufacturing company maintains an inventory of steel for use in its business. The company uses LIFO periodic for its inventory of steel. Beginning inventory for the current period was as follows: 6,000 tons @ $400 per ton 15,000 tons @ $450 per ton Only one purchase of steel was made during the year: 25,000 tons @ $600 pe

High low inventory method; COGS ; average cost per unit

1. Production in 2009 for Jensen Jet Ski was at its highest point in the month of June when 40 units were produced at a total cost of $600,000. The low point in production was in January when only 15 units were produced at a cost of $340,000. The company is preparing a budget for 2008 and needs to project expected fixed cost for

Ending inventory using dollar-value LIFO

Athens Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, Year 1. Its inventory at that date was $100,000 and the relevant price index was 100. Inventory at Price Date Current P

how do you value PPE, bonds, AR, inventory and AP

1-When a company cannot justify applying the going concern assumption, different measurement attributes may be required. Identify the most likely measurement. 1. Plant and equipment would be valued at _______________________________________________ 2. Bonds Payable would be valued at _______________________________________

Cost of the ending inventory

The Foley Company is a multi-product firm. Presented below is information concerning one of their products. Date Transaction Quantity Cost 1-Jan Beginning Inventory 1,000 $12 4-Feb

Inventory turnover rate

PMT Incorporated 2008 financial statements showed the following: Sales Revenue: $1,500,000 Cost of Goods sold: $1,100,000 Beginning Inventory: $150,000 Ending Inventory: $130,000 What was the company's inventory turnover rate for 2008? Please describe your answer.

Ending Inventory using LIFO

Bute Bears is a teddy bear shop in Bute Kentucky. The store began August with 200 bears that cost $6.00 each in inventory. During the month, the store made the following purchases: Date Units Purchased Cost Per unit Total Cost 9-Aug 150 $5.50 $825.00 18-Aug 130 $6.50 $845.00 29-Aug 200 $6

Ending inventory using average cost method

Bill's Hardware Store sell sandpaper. On October 1st, Bill had 4000 sheets of sandpaper at an average cost of .25 each. The store also made the following purchases of sandpaper inventory during the month: Date Units Purchased Cost Per unit Total Cost 3-Oct 8000 $0.24 $1,920.00 17-Oct 3000 $0.26 $780.00 21-Oct 6000 $0.28

Calculate Ending Inventory using FIFO periodic for a store

Using the FIFO periodic inventory costing method, calculate the store's ending inventory for April. The store sold 850 units during April. Date Units Purchased Cost Per unit Total Cost 15-Apr 200 $5.00 $1,000.00 24-Apr 500 $6.00 $3,000.00 26-Apr 300 $5.50 $1,650.00 29-Apr 4

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

Cost of Goods Sold - Average cost method inventory costing

Bubba's Hardware Store sells sheets of sandpaper in bulk. On October 1st, Bubba had 4000 sheets of sandpaper at an average cost of $.25 each. The store also made the following purchase of sandpaper inventory during the month: Date Units Purchased Cost per Unit Total Cost 10/3 8000 $0.24 $1,920 10/17

Cost of Goods Sold using LIFO Periodic Inventory

Turk's Toy Trains began 2008 with 1200 toy trains, which cost $9.00 each in its inventory. During the year it made the following inventory purchase of inventory. Date Units Purchased Cost per Unit Total Cost 3/18 500 $9.50 $4,750 6/4 700

Cost of goods sold and ending inventory data

Desired ending inventory is 80% of beginning inventory. If cost of goods sold is $300,000, which of the following statements is true regarding purchases? a. Purchases will be more than cost of goods sold b. Purchases will be 80% of cost of goods sold c. Purchases will equal cost of goods sold d. Purcha

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

Journal Entries for entity using a perpetual inventory system.

Journal entries of these three problems using perpetual inventory system. 1) Held office party for retiring accountant. Balloons, hats and refreshments cost $150 and were paid for with office staff contributions. 2) Company executives appeared on the cover of a national advertising magazine. Related article extolled Ge

Selling an Inventory Item: Middleton Example

Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sell an inventory item?

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

Investment Inventory

A new investment in inventory being considered by Quincy Corporation requires an initial outlay of $100,000 on January 1, year 1. The inventory is expected to be liquidated at the end of 5 years for $80,000. This investment is expected to generate the following additional revenues and expenses: Year 1

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