Computing inventory turnover and days sales in receivables: Low's companies income statement year ended January 31, 2011 Net sales 40.6 cost of goods sold 22.5 interest expenses 0.4 all other expenses 6.9 Net income 10.8
Nowlin Pipe & Steel has projected sales of 72,000 pipes this year, an ordering cost of $6 per order, and carrying costs of $2.40 per pipe. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be?
Kim's Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year. COST RETAIL Beginning inventory $ 30,000.00 $ 50,000.00 Purchases
Inventory information for Part 311 of Seminole Corp. discloses the following information for the month of June. June 1 Balance 300 units @ $10 June 10 Sold 200 units @ $24 11 Purchased 800 units @ $11 15 Sold 500 units @ $25 20 Purchased 500 units @
A companys inventory records showed the following data relative to a particular item sold regularly ( assume that the transactions take place in the order given and inventory is valued using a periodic not perpetual system) Units Unit Cost 1
Converse Supplies produces a product with the following costs as of July 1, 2009. Material $6 Labor $4 Overhead $2 Beginning inventory at these costs on 1 July was 5,000 units. From 1 July to 1 December, Converse produced 15,000 units. These units had a material cost of $10 per unit. The costs for labor and
Honda holds inventory all over the world. Assume that the records for an auto part shows the following: Beginning inventory - $150,000 Net purchases - 800,000 Net sales - 1,000,000 Gross profit rate - 40% Suppose this inventory, stored in the U.S., was lost in a fire. Estimate the amount of the loss to Honda. Use the gr
Compute cost of goods sold and gross profit under (a) FIFO (b) LIFO and (c) average cost (round average cost per unit to the nearest cent and al other amounts to the nearest dollar). Beginning Inventory - 20 tires @ $60 Purchase - 8 tires @ $75 Sale - 15 tires @ $110
The following transactions were incurred concerning a small lawn mower business during April: April 1 Beginning Inventory 15 mowers @$110 per mower April 5 Purchased 20 mowers @ $115 per mower April 12 Sold 20 @ $160 per mower April 20 Purchased 10 mowers @ $120 per mower April 28 Sold 16 @ $160 per mower
Control Furniture Company Annual Report Excerpts (Figures in thousands of dollars) December 31 2015 2016 Inventories at FIFO Cost 846.3 852.6 Excess of FIFO Cost over LIFO Cost (231.4) (257.2) Inventories at LIFO Cost 614.9 595.4 Given the financial information presen
Franklyn Furniture (FF) is a midsized owner operated business that was started 25 years ago by Fred Franklyn. The retail furniture business is cyclical, with business dropping off in times of economic downturn, as is the case currently. In order to encourage sales, the store offers its own credit cards to good customers. FF has
Problem attached in best format. You are the vice-president of finance of Mickiewicz Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2010. These schedules appear below. Sales ($5 per unit) Cost of Goods Sold Gross Margin Schedule 1 $154,600
See the attached data file. Instruction: Review the class results for the influence tactics Inventory. Compare the influence tactics your fellow learners used with superiors, subordinates, and co-workers. 1. How do the tactics vary in how frequently they are used and why does this pattern occur? 2. Which influenc
Gotham Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Gotham was the consignor. The ending inventory balance of $412,000 included $22,000 of office suppl
A company has the following per unit original costs and replacement costs for its inventory: Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $6.50 Part C: 160 units with a cost of $3, and replacement cost of $2.50 Under the lower of cost or marke
Identify the inventory methods that result in the most current costs in the income statement and balance sheet are: Income Statement Balance Sheet A. FIFO LIFO B. LIFO FIFO C. FIFO FIFO D. LIFO LIFO Please explain your
The White Wove Corporation began operations in 2011. A summary of the firs quarter appears below: Purchases: January 2...............250 units...............$23,250 February 11............100 units...............$9,500 February 20.............400 units.........$38,400 March 21................200 units..............
A flood recently destroyed many of the financial records of Yak Manufacturing Company. Management has hired you to re-create as much financial information as possible for the month of July. You are able to find out that the company uses an average cost inventory valuation system. You also learn that Yak makes a physical cout
Question 1 How would the following errors affect the account balances and the basic accounting equation, Assets = Liabilities + Owners' Equity? How do the misstatements affect income? 1. The purchase of a truck is recorded as an expense instead of an asset. 2. A cash payment on accounts receivable is received but not recor
In the T-account cost flow diagram of balance sheet inventory accounts and the income statement cost of goods sold account: a. cost of goods sold is debited to finished goods inventory. b. cost of goods manufactured is debited to finished goods inventory. c. direct labor costs are credited to work in process. d
Jerrings Company has already manufactured 28,000 units of Products A at a cost of $28 per unit. The 28,000 units can be sold at this stage for $700,000. Alternatively, it can be further processed at a $420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling
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
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
1. Operating income versus net income Refer to the selected financial data (five-year) financial summary) of the Intel Corporation annual report. Required: Compare the trend of the operating income data with the trend of net income data from 2004 through 2008. Which series of data is more meaningful? Explain your answer.
Discuss how the consistency principle and the full disclosure principle affect inventory valuation, include examples?
Explain how to determine inventory valuation and the methods used to determine the cost of goods on hand. What is the difference between a physical inventory system and a perpetual inventory system? What costs are assigned to merchandise inventory? Explain the following methods to determine inventory valuation: FIFO, LIFO, an
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
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 _______________________________________
The Red Sky company is a wholesale company that purchases items from manufacturers and sells them to retail establishments. On December 31, 2010 Red Sky had the following in ending inventory: Product Code Quantity Cost Each Current Replacement Cost Each AB72YZ 1,970 $58 $63 CT68WS 3,280 38 36 FA92PL 1,640 51 57 GG