Recent Question

Compute the lower-of-cost-or-net realizable 1 Eckert Company reported the following summarized annual data at the end of 2011: Sales revenue $1,000,000 Cost of goods sold* 600,000 Gross margin 400,000 Operating expenses 250,000 Income before income taxes $ 150,000 *Based on an ending FIFO inventory of $250,000. The income tax rate is 30%. The controller of the company is considering a switch from FIFO to average-cos ...

Other / Other 02 Apr 2016

Instructions Compute each of the following under the average-cost 1 The following information is available for Massey Company: Beginning inventory 600 units at €5 First purchase 900 units at €6 Second purchase 500 units at €7 Assume that Massey uses a periodic inventory system and that there are 800 units left at the end of the month. Instructions Compute the cost of ending inventory under the (a) FIFO method. ...

Other / Other 02 Apr 2016

Flott Department Store prepares monthly financial statements aEx. 237 Flott Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: At Cost At Retail Beginning inventory $ 35,000 $ 50,000 Merchandise purchases 115,000 150,000 The net sales for July amounted to $140,000. Instr ...

Other / Other 02 Apr 2016

Goods purchased on account in December of the current year 1 Moore Company reported net income of $60,000 in 2011 and $80,000 in 2012. However, ending inventory was overstated by $10,000 in 2011. Instructions Compute the correct net income for Moore Company for 2011 and 2012. 2 For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by placing the appropriate code le ...

Other / Other 02 Apr 2016

Lois Howe and Ron Dole are department managers i 1 Errors occasionally occur when physically counting inventory items on hand. Identify the financial statement effects of an overstatement of the ending inventory in the current period. If the error is not corrected, how does it affect the financial statements for the following year? 2 Lois Howe and Ron Dole are department managers in the housewares and shoe departments, respectively, f ...

Other / Other 02 Apr 2016

Purdy Company is in the electronics industry 1 Wang Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 300 ¥500 ¥150,000 12 Purchase 450 600 270,000 23 Purchase 750 700 525,000 30 Inventory 180 Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and a(2) LIFO. (b) Compute the cost of the ending inventory and the cost of goo ...

Other / Other 02 Apr 2016

Calculate the inventory turnover ratio 1 At December 31, 2011, the following information was available for Fife Company: ending inventory $22,600; beginning inventory $21,400; cost of goods sold $154,000; and sales revenue $330,000. Calculate the inventory turnover ratio and days in inventory for Fife. 2 Hoyt Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, Septembe ...

Other / Other 02 Apr 2016

Two widely used methods of estimating inventories 1. The ______________ method tracks the actual physical flow of each unit of inventory available for sale; however, management may be able to manipulate ______________ by using this method. 2. If the unit cost of inventory has continuously increased, the ______________, first-out inventory valuation method will result in a higher valued ending inventory than if the ______________, fir ...

Other / Other 02 Apr 2016

Lumley Company uses the perpetual inventory system 1 Zimmer Company uses the perpetual inventory system and the LIFO method. The following information is available for the month of May: May 1 Beginning inventory 20 units @ ₤5 10 Purchase 20 units @ ₤8 15 Sales 15 units 18 Purchase 10 units @ ₤9 21 Sales 15 units 30 Purchase 10 units @ ₤10 Instructions Prepare a schedule to show cost of goods sold an ...

Other / Other 02 Apr 2016

The cost of goods purchased during a period 1. Accounting for inventories is important because inventories affect the ______________ section of the statement of financial position and the ______________ section on the income statement. 2. In a manufacturing company, goods that are ready to be sold to customers are referred to as ________________, whereas in a merchandising company they are generally referred to as _______________. ...

Other / Other 02 Apr 2016