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What is the lower-of-cost-or-net realizable value for product 66 1. Given the historical cost of product Z is $150, the selling price of product Z is $190, costs to sell product Z are $21, and the cost to complete product Z is $30, what is the net realizable value that should be used in the lower-of-cost-or-net realizable value comparison? a. $160. b. $169. c. $139. d. $150. 2. Given the historical cost of product Z is $150, the sel ...

Other / Other 06 May 2016

The average days to sell inventory is computed by dividing 1. The average days to sell inventory is computed by dividing a. 365 days by the inventory turnover ratio. b. the inventory turnover ratio by 365 days. c. net sales by the inventory turnover ratio. d. 365 days by cost of goods sold. 2. The inventory turnover ratio is computed by dividing the cost of goods sold by a. beginning inventory. b. ending inventory. c. average ...

Other / Other 06 May 2016

When you undertook the preparation of the financial statements Pr. 1—Gross profit method. On December 31, 2010 Felt Company's inventory burned. Sales and purchases for the year had been $1,400,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2010) was $170,000; in the past Felt's gross profit has averaged 40% of selling price. Instructions Compute the estimated cost of inventory burned, and give entries as of D ...

Other / Other 06 May 2016

The company controller had the following information available at year 1. Braum Dairy produces milk to sell to local and national ice cream producers. Braum Dairy began operations on January 1, 2011 by purchasing 650 milk cows for $780,000. The company controller had the following information available at year end relating to the cows: Milking cows Carrying value, January1, 2011 $780,000 Change in fair value due to growth a ...

Other / Other 06 May 2016

The approximate cost of the ending inventory by the conventional retail method 1. Goren Corporation had the following amounts, all at retail: Beginning inventory $ 3,600 Purchases $100,000 Purchase returns 6,000 Net markups 18,000 Abnormal shortage 4,000 Net markdowns 2,800 Sales 72,000 Sales returns 1,800 Employee discounts 1,600 Normal shortage 2,600 What is Goren’s ending inventory at retail? a. $34,400. b. $36,000. c ...

Other / Other 06 May 2016

Which statement is true about the retail inventory method 1. Which statement is not true about the gross profit method of inventory valuation? a. It may be used to estimate inventories for interim statements. b. It may be used to estimate inventories for annual statements. c. It may be used by auditors. d. None of these. 2. A major advantage of the retail inventory method is that it a. provides reliable results in cases where the ...

Other / Other 06 May 2016

Prepare the journal entries for Akimora’s biological asset Ex. 1—LCNRV—Journal Entries Dover Company began operations in 2010 and determined its ending inventory at cost and at a LCNRV at December 31, 2010, and December 31, 2011. This information is presented below. Cost Net Realizable Value 12/31/10 £520,000 £485,000 12/31/11 615,000 585,000 Instructions (a) Prepare the j ...

Other / Other 06 May 2016

Under International Financial Reporting Standards True or false: 1. Biological assets, such as milking cows, are reported as non-current assets at fair value less costs to sale (net realizable value). 2. The unrealized gains and losses related to recording biological assets at their correct valuation are reported as part of other comprehensive income on the statement of comprehensive income. 3. Under International Financial Repor ...

Other / Other 06 May 2016

Determine the unit value that should be used for inventory costing Ex. 1—Lower-of-cost-or-net realizable value. Determine the proper unit inventory price in the following independent cases by applying the lower of cost or net realizable value rule. Circle your choice. 1 2 3 4 5 Cost $80 $105 $120 $60 $72 Sales value 100 130 160 65 80 Cost to complete 18 19 21 4 6 Cost to sell 7 10 12 2 5 Ex. 2 ...

Other / Other 06 May 2016

Shake Company’s inventory experienced a decline 1. Which of the following is not an acceptable method of applying the lower-of-cost-or-net realizable value method to inventory? a. Inventory location. b. Groups of inventory items. c. Individual item. d. Total of the inventory. 2. Which method(s) may be used to record a loss due to a price decline in the value of inventory? a. Loss method. b. Sales method. c. Cost-of-goods-s ...

Other / Other 06 May 2016