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Accounting for inventories under IFRS is very similar to accounting True or false 1. If the inventory reported on the statement of financial position is understated, then net income reported on the income statement is understated. 2. Accounting for inventories under IFRS is very similar to accounting under GAAP. 3. A major difference between IFRS and GAAP is that GAAP specifically prohibits use of the FIFO cost flow assumption. 4 In ...

Other / Other 02 Apr 2016

Which inventory costing method most closely 1. The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $8,400 for FIFO and $7,560 for average-cost. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of average-cost? a. $300 b. $450 c. $240 d. $840 2. The consistent application of an inventory costing method is essential f ...

Other / Other 02 Apr 2016

Nolvo Company uses the periodic inventory Use the following information for questions 1–2. Brocken Co. has the following data related to an item of inventory: Inventory, May 1 1,000 units @ £4.20 Purchase, May 7 3,500 units @ £4.40 Purchase, May 16 700 units @ £4.50 Inventory, May 31 1,300 units 1. The value assigned to cost of goods sold if Brocken uses average-cost is a. £17,062. b. £16,900. c. £1 ...

Other / Other 02 Apr 2016

Use of the FIFO inventory valuation method True or false 1. If the unit price of inventory is increasing during a period, a company using the average-cost inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. 2. If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the sa ...

Other / Other 02 Apr 2016

Tim Stark is a new accountant with Watts Company Tim Stark is a new accountant with Watts Company. Watts purchased merchandise on account for $9,000. The credit terms are 2/10, n/30. Tim has talked with the company's banker and knows that he could earn 8% on any money invested in the company's savings account. Instructions (a) Should Tim pay the invoice within the discount period or should he keep the $9,000 in the savings account and ...

Other / Other 01 Apr 2016

The following information is available for Miley Company The following information is available for Miley Company: Administrative expenses $ 30,000 Cost of goods sold 245,000 Sales 350,000 Sales returns and allowances 15,000 Selling expenses 50,000 Instructions Compute each of the following: (a) Net sales (b) Gross profit (c) Income from operations Business Management Assignment Help, Business Management Homework help, Busi ...

Other / Other 01 Apr 2016

Prepare a single-step income statement for the year Deloy Company gathered the following condensed data for the year ended December 31, 2008: Cost of goods sold $ 690,000 Net sales 1,250,000 Administrative expenses 234,000 Interest expense 58,000 Dividend revenue 38,000 Loss from employee strike 233,000 Selling expenses 45,000 Instructions 1. Prepare a single-step income statement for the year ended December 31, 2008. 2. Prepare a ...

Other / Other 01 Apr 2016

Prepare the necessary journal entries to record Prepare the necessary journal entries to record the following transactions, assuming Barone Company uses a perpetual inventory system. (a) Purchased $30,000 of merchandise on account, terms 2/10, n/30. (b) Returned $500 of damaged merchandise for credit. (c) Paid for the merchandise purchased within 10 days. Business Management Assignment Help, Business Management Homework help, B ...

Other / Other 01 Apr 2016

The following information is available for Olson Company The following information is available for Olson Company: Beginning inventory $ 45,000 Ending inventory 70,000 Freight-in 10,000 Purchases 270,000 Purchase returns and allowances 8,000 Instructions Compute each of the following: (a) Net purchases (b) Cost of goods purchased (c) Cost of goods sold Business Management Assignment Help, Business Management Homework help, ...

Other / Other 01 Apr 2016

Journalize the September transactions for Snow Supply On September 1, Snow Supply had an inventory of 15 backpacks at a cost of $25 each. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Sept. 4 Purchased 70 backpacks at $25 each from Jenks, terms 2/10, n/30. Sept. 6 Received credit of $150 for the return of 6 backpacks purchased on Sept. 4 that were defective. Sept. 9 S ...

Other / Other 01 Apr 2016