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Merchandise purchases for July are anticipated to be 1. RS Corporation, a manufacturer of ethnic foods, contracted in 2010 to purchase 500 pounds of a spice mixture at $5.00 per pound, delivery to be made in spring of 2011. By 12/31/10, the price per pound of the spice mixture had risen to $5.60 per pound. In 2010, AJ should recognize a. a loss of $2,500. b. a loss of $300. c. no gain or loss. d. a gain of $300. 2. LF Corporation, ...

Other / Other 06 May 2016

Briefly describe some of the similarities and differences between U.S. GAAP and IFRS 1. Briefly describe some of the similarities and differences between U.S. GAAP and IFRS with respect to the accounting for inventories. 2. Explain the main obstacle to achieving convergence in the area of inventory accounting. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Cou ...

Other / Other 06 May 2016

The credit balance that arises when a net loss on a purchase commitment 1. Commodity broker-traders a. Produce or raise commodities such as corn, wheat, or precious metals. b. Hold their inventory primarily to sell the commodities in the near term and generate a profit from price fluctuations. c. Value their inventories at the lower-of-cost-or-net realizable value (LCNRV). d. All of the choices are correct regarding broker-traders. ...

Other / Other 06 May 2016

What unit values should Oslo use for products 1. Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. Specific data with respect to each product follows: Product #1 Product #2 Selling price $60 $130 Historical cost 40 70 Cost to sell 10 26 Cost to complete 15 40 In pricing its ending inventory using the lower-of-cost-or-net realizable value, what unit values should Oslo use f ...

Other / Other 06 May 2016

What is the ending inventory value at cost 1. On October 31, a fire destroyed PH Inc.'s entire retail inventory. The inventory on hand as of January 1 totaled $680,000. From January 1 through the time of the fire, the company made purchases of $165,000 and had sales of $360,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed? a. $680,000. b. $673,000. c. $485,0 ...

Other / Other 06 May 2016

Which of the following is not a common disclosure for inventories 1. What method yields results that are essentially the same as those of the conventional retail method? a. FIFO. b. Lower-of-average-cost-or-net realizable value. c. Average cost. d. LIFO. 2. What is the effect of net markups on the cost-retail ratio when using the conventional retail method? a. Increases the cost-retail ratio. b. No effect on the cost-retail rati ...

Other / Other 06 May 2016

The gross profit method can be used to approximate the dollar amount of inventory True or false: 1. If the contract price on a noncancelable purchase commitment exceeds the market price, the buyer should recognize a liability and corresponding loss in the period in which the market decline takes place. 2. When a buyer enters into a formal, noncancelable purchase contract, an asset and a liability are recorded at the inception of the con ...

Other / Other 06 May 2016

Calculate the estimated cost of the inventory Ex. 1—Gross profit method. On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance co ...

Other / Other 06 May 2016

Which of the following will Rios, Inc. record in 2011 1. Robust Inc. has the following information related to an item in its ending inventory. Acer Top has a cost of $502, a selling price of $568, a cost to complete of $53, and a cost to sell of $38. What is the lower-of-cost-or-net realizable inventory value for Acer Top? a. $515. b. $502. c. $477. d. $530. 2. Rios, Inc. uses International Financial Reporting Standards (IFRS). In ...

Other / Other 06 May 2016

What is the journal entry to record the purchase 1. Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $3,000 and received 8,500 pieces of candy that are allocated among three groups. Group 1 consists of 2,500 pieces that are expected to sell for $0.25 each. Group 2 consists of 5,500 pieces that are expected to sell for 0.60 each. Group 3 consists of 500 pieces tha ...

Other / Other 06 May 2016