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Goods held on consignment were included in inventory Pr. 1—Inventory cut-off. Vogts Company sells TVs. The perpetual inventory was stated as $28,500 on the books at December 31, 2010. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows. 1. TVs shipped to a customer January 2, ...

Other / Other 06 May 2016

The cost flow assumption used by Johnson 1. Emley Company has been using the average cost method of inventory valuation for 10 years, since it began operations. Its 2010 ending inventory was $40,000, but it would have been $60,000 if FIFO had been used. Thus, if FIFO had been used, Emley's income before income taxes would have been a. $20,000 greater over the 10-year period. b. $20,000 less over the 10-year period. c. $20,000 greater i ...

Other / Other 06 May 2016

Which of the following types of interest cost incurred 1. Which of the following is correct? a. Selling costs are product costs. b. Manufacturing overhead costs are product costs. c. Interest costs for routine inventories are product costs. d. All of these. 2. Costs which are inventoriable include all of the following except a. costs that are directly connected with the bringing of goods to the place of business of the buyer. b ...

Other / Other 06 May 2016

What value should be assigned to the ending inventory using FIFO Ex. 1—FIFO and Average Cost periodic inventory methods. The Rock Shop shows the following data related to an item of inventory: Inventory, January 1 100 units @ $5.00 Purchase, January 9 300 units @ $5.40 Purchase, January 19 100 units @ $6.00 Inventory, January 31 150 units Instructions (a) What value should be assigned to the ending inventory using FI ...

Other / Other 06 May 2016

Compute the price index for 2010 *Pr. 1—Dollar-value LIFO. Aber Company manufactures one product. On December 31, 2009, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $180,000. Inventory data are as follows: Inventory at Price index Year year-end prices (base year 2009) 2010 $252,000 1.05 2011 368,000 1.15 2012 387,500 1.25 Instruction ...

Other / Other 06 May 2016

The cost flow assumption adopted must be consistent with the physical movement TRUE OR FALSE: 1. Under IFRS, agricultural inventories, such as wheat, oranges, etc., are recorded at their fair value less estimated selling costs at the point of harvest. 2. The International Accounting Standards Board (IASB) requires the specific identification method of inventory costing where individual items of inventory can be identified and costed. ...

Other / Other 06 May 2016

Which of the following is a reason why the specific identification method 1. Tanner Corporation's inventory cost on its statement of financial position was lower using first-in, first-out than it would have been using average cost. Assuming no beginning inventory, in what direction did the cost of purchases move during the period? a. Up b. Down c. Steady d. Cannot be determined 2. In a period of declining prices, the inventory met ...

Other / Other 06 May 2016

Why are inventories included in the computation of net income 1. Companies must allocate the cost of all the goods available for sale (or use) between a. The cost goods on hands at the beginning of the period as reported on the statement of financial position and the cost of goods acquired or produced during the period. b. The cost of goods on hand at the end of the period as reported on the statement of financial position and the cost of ...

Other / Other 06 May 2016

Using the LIFO method, what is the ending inventory 1. Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the FIFO method, what is the ending inventory? a. $20,073. b. $18,600. c. $20,925. d. $ ...

Other / Other 06 May 2016

Walsh should record the cost of this merchandise as 1. How should the following costs affect a retailer's inventory valuation? Freight-in Interest on Inventory Loan a. Increase No effect b. Increase Increase c. No effect Increase d. No effect No effect 2. The following information applied to Howe, Inc. for 2010: Merchandise purchased for resale $300,000 Freight-in 8,000 Freight-out 5,000 Purchase returns 2,000 Howe's ...

Other / Other 06 May 2016