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London Co. uses a periodic inventory 1 Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ ₤10.00 = ₤ 4,000 8 Purchase 800 units @ ₤10.40 = 8,320 16 Purchase 600 units @ ₤10.80 = 6,480 24 Purchase 200 units @ ₤11.60 = 2,320 Total units and cost 2,0 ...

Other / Other 02 Apr 2016

Linden Watch Company reported the following income 1 Boyer Company applied FIFO to its inventory and got the following results for its ending inventory. VCRs 140 units at a cost per unit of $65 DVD players 210 units at a cost per unit of $75 iPods 175 units at a cost per unit of $80 The cost of purchasing units at year-end was VCRs $71, DVD players $69, and iPods $78. Instructions Determine the amount of ending inventory at low ...

Other / Other 02 Apr 2016

Jerry White is studying for the next accounting mid-term 1 Your former college roommate is opening a new retail store and asks you “Which inventory costing method should I use?” What is your response? Include a comparison of the tax effect, statement of financial position effect, and income statement effect for FIFO versus average-cost. 2 Jerry White is studying for the next accounting mid-term examination. What sh ...

Other / Other 02 Apr 2016

This information is available for Grant's Photo Corporation 1 This information is available for Grant's Photo Corporation for 2011 and 2012. 2011 2012 Beginning inventory $ 200,000 $ 300,000 Ending inventory 300,000 380,000 Cost of goods sold 1,150,000 1,330,000 Sales 1,600,000 1,900,000 Instructions Calculate inventory turnover, days in inventory, and gross profit rate for Grant's Photo Corporation for 2011 and ...

Other / Other 02 Apr 2016

Sauder Company reports goods available for sale 1 The inventory of Pedigo Company was destroyed by fire on April 1. From an examination of the accounting records, the following data for the first three months of the year are obtained: Sales $165,000 Sales Returns and Allowances 5,000 Purchases 90,000 Freight-In 3,500 Purchase Returns and Allowances 4,000 Instructions Determine the merchandise lost by fire, assuming a begi ...

Other / Other 02 Apr 2016

Compute the valuation for the December 31, 2011, inventory 1 The controller of Scheller Company is applying the lower-of-cost-or-Net realizable value basis of valuing its ending inventory. The following information is available: Cost Net Realizable Value Lawnmowers: Self-propelled $15,000 $17,000 Push type 19,000 16,000 Total 34,000 33,000 Snowblowers: Manual 30,000 31,000 Self-start 18,000 21,000 ...

Other / Other 02 Apr 2016

FIFO and average-cost are the two most common cost flow 1 FIFO and average-cost are the two most common cost flow assumptions made in costing inventories. The amounts assigned to the same inventory items on hand may be different under each cost flow assumption. If a company has no beginning inventory, explain the difference in ending inventory values under the FIFO and average-cost cost bases when the price of inventory items purchased d ...

Other / Other 02 Apr 2016

Using the FIFO assumption, calculate the amount charged 1 Clarke Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $4 $ 400 1/20 Purchase 400 $5 2,000 7/25 Purchase 200 $7 1,400 10/20 Purchase 300 $8 2,400 1,000 $6,200 A physical count of inventory on December 31 revealed that there were 400 units on hand. Instruc ...

Other / Other 02 Apr 2016

Assuming the errors had not been corrected, indicate the dollar effect 1 Speer's Hardware Store prepared the following analysis of cost of goods sold for the previous three years: 2010 2011 2012 Beginning inventory 1/1 €40,000 €18,000 €25,000 Cost of goods purchased 50,000 55,000 70,000 Cost of goods available for sale 90,000 73,000 95,000 Ending inventory 12/31 18,000 25,000 40,000 Cost o ...

Other / Other 02 Apr 2016

Quigley Company's records indicate the following information 1. Under the LCNRV approach, the net realizable value is defined as a. FIFO cost. b. LIFO cost. c. the net amount that a company expects to realize from a sale. d. selling price. 2. Euler Company made an inventory count on December 31, 2011. During the count, one of the clerks made the error of counting an inventory item twice. For the statement of financial position a ...

Other / Other 02 Apr 2016