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.
Intermediate financial accounting. Explain how to determine inventory valuation and the methods used to determine the cost of goods on hand.
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 _______________________________________
Demonstrate lower of cost or market computation for inventory balances given seven products. Make journal entries resulting from computations.
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
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
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.
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
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
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
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
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
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
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
You have the following information for Benton Inc. for the month ended October 31, 2007. Benton uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct 1 Beginning Inventory 60 $25 Oct 9 Purchase 120 27 Oct 11 Sale 100 35 Oct 17 Purcha
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
The following information regarding inventory transactions is available for the month of July. Date Type of Event #Units Unit Cost Total Cost July 1 Beginning Inventory 180 $8 $1,440 July 5 Purchase
4. Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000
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
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?
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
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
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
What are the advantages and disadvantages of using a LIFO inventory system? In what circumstances would you make the case for using LIFO? How do you feel about the IASB approach to LIFO compared to to the FASB approach? Which is more appropriate and why?
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
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
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
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