A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers Stereos $ 93 338 $ 101 253 114 103 Amplifiers Subwoofers Security equipment Alarms 319 89 98 197 55 44 473 153 128 Locks 284 96 87 Cameras Binocular equipment Tripods Stabilizers 205 313 325 178 73 87 163 100 108 Required: 1. Compute the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.
Q: Makeover Inc. believes that at its current stock price of P16.00 the firm is undervalued in the…
A: Answer:- Expected per-share market price after repurchase is P18.18. Explanation:-…
Q: Requiring an employee who does not handle accounting records to open the mail is an example of…
A: Accounting is the process of recording, classifying and summarising accounting information. After…
Q: 3. What are the different investments? a. Create a diagram showing all possible investments. b.…
A: Investment Investment is considered to be the important part for the individual as well as the…
Q: operating costs wer
A: Given as, Revenue $25 Operating costs $4.75 $3,150
Q: hen purchase costs regularly rise, the inventory costing method that yields the highest reported net…
A: The inventory can be valued using various methods as LIFO, FIFO, average and specific identification…
Q: Problem 8: You were assigned to audit he books of BACOLOD CORP. for the period ended December 31,…
A: Net sale is sum of the cash sales and credit sale reduced by sales returns and discount. The cost of…
Q: businessman who buys packages of goods and wholesales the package for cash. Hi
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: A director must be a shareholder in a corporation. True or False True False
A: Shareholders and directors are two very distinct roles within a limited company. In simple terms,…
Q: On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par…
A: The retained earnings of the business includes the net income or loss earned, dividend declared,…
Q: Prepare journal entries to record the following transactions. A. November 19, purchased merchandise…
A: Introduction:- Journal entry is first step in accounting process. It is used to record business…
Q: of Project million nillion 1 illion 11 illion 10 illion 1C
A: Given:
Q: Britgeport Coruse he percentige-otreceivablesbasis to record Accounts recelvable lending balance…
A: The net realizable value is calculated as difference between account receivables and allowance for…
Q: Activities and Activity Measures Estimated Overhead Cost Supporting direct labour (DLHs) $552,000…
A: Traditional costing system is the system which is used to allocate the overhead on the basis of…
Q: Garden Zone,a plant nursery,records an accounting entry that increases inventory by $380.The entry…
A: Lets understand the basics. Every accounting transaction always having two impacts as per dual…
Q: 500000 258000 250000 62000 Ending retained Earnings? Question 24) Sales Variable and fixed costs…
A: Formula: Ending Retained Earnings = Beginning retained Earnings + Net income - Dividends paid
Q: Performance Report Bowling Company budgeted the following amounts: Variable costs of production:…
A: The performance report is prepared to measure the actual results with budgeted data for actual…
Q: Larry Mattingly turned 20 years old today His grandfather had establshed a trust fund that will pay…
A: Present value or PV is the discounted worth of a future cash flow taking into consideration the time…
Q: Identify the financial statement on which each of the following accounts would appear: the income…
A: The financial statements of the business are classified as balance sheet, retained earnings, income…
Q: Product A Product B Product C 700 $ 80 $ 35 mand in units 600 800 $ 65 $ 26 $ 45 $ 20 1.25 2.5 3.0…
A: Contribution margin for a constrained resource is calculated by dividing the contribution margin per…
Q: Question one Discuss the strengths and weakness of the Newer Innovative health financing mechanisms…
A: the healthcare movement has brought about positive changes in the society which has erase in…
Q: Required information [The following information applies to the questions displayed below] On January…
A: A classified balance sheet is a financial statement under which each item of asset or liability is…
Q: Determine whether the balance in each of the following accounts increases with a debit or a credit.…
A: Introduction: Accounts: Accounts are of 2 types: 1 ) Debit Account - Recording debit side called…
Q: January 1, 2020 WI entered into a two year interest rate swap in with DI Corp. WI received 8% fixed…
A: Journal entry A journal entry is the method used to record all individual financial transactions…
Q: Mary has a general dealer business and uses the periodic inventory system to keep records of buying…
A: Trading account is a statement which is prepared by a firm. It shows the gross profit of firm for a…
Q: A special revenue fund reports total assets of $400,000 and total liabilities of $375,000. It…
A: Basic Accounting concepts Fund Accounts balance
Q: Which of the following statements is TRUE? a. In net asset acquisition, gain on bargain purchase is…
A: As per IFRS 3 Acquisition Method shall be used for accounting business combination. As per the IFRS…
Q: Income statement information for Einsworth Corporation follows: Sales $418,000 Cost of goods sold…
A: Under vertical analysis each item on the line is calculated as percentage of base figure , In case…
Q: 1. Straight line. 2.Double-Declining Method 3. Units of production using miles driven as a measure…
A: Miles driven per annum is not given in the question. So, depreciation per mile is calculated only .
Q: What is capital gain taxation?
A: Introduction:- Capital gain tax charged on Profits from the sale of an investment.
Q: Cash receipts by issuing share are A. Cash inflows from investing activities B. Cash inflows from…
A: The cash flow statement is prepared to record the cash flow from various activities including…
Q: a. All future prices and future dividends are expected values OTrue OFalse
A: Since you have posted multiple questions, we shall be solving the first one for you. In case you…
Q: when required reserves fall, banks cease granting new loans, which cause _________(assets/…
A: In Banking Sector, when new loans are given which results in flow of money, it is said that money is…
Q: There are two projects under consideration by the Rainbow factory. Each of the projects will require…
A: Net present value refers to the difference between present value of cash inflows and the present…
Q: Sandhill has unused productive capacity that is expected to continue indefinitely: management has…
A:
Q: The following information were taken from the statement of realization and liquidation of ABC…
A: Introduction: The balance sheet serves as the foundation for determining investor rates of return…
Q: Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems.…
A: Material Variances
Q: Pit Coporation owns 75% of Stop Company's outstanding common stock. On 01/01/21, Pit sold sold a…
A: Consolidated means the combination of two firms. When two firms join together into one. For example…
Q: Joseph income from various souces are $ 75500 LTCG is $ 510000 Exemption cannot be $ 180000 Tax rate…
A: Formula: Tax payable amount = Taxable amount x Tax rate
Q: Exercise 7-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis (LO7-1,…
A: Contribution per unit = Selling price per unit - Variable cost per unit…
Q: Average total assets (excluding long-term inve
A: The Asset turnover ratio compares the worth of a company's sales or revenues to the value of its…
Q: Your savings account pays 6% annually. Assuming this interest rate remains constant, how much do you…
A: If the annual saving interest is 6%. let's say the amount invested is X So total amount after 4…
Q: If sales increase from P80.000 per year to P140,000 per year, and if the operating leverage factor…
A: Calculation of Expected Percentage increase in Net Operating Income if sales increase by 75%…
Q: A manufacturing company has budgeted a manufacturing level of 100,000 units. The manufacturing unit…
A: Variance costing is a method in the costing system under which various types of variances are…
Q: The inventory turnover ratio: Multiple Choice Is used to measure solvency. Reveals how many days a…
A: Inventory turnover is a financial statistic that shows how many times a company's inventory is sold…
Q: year, Maria decides to withdraw from the partnership. Maria will receive cash settlement P150,000…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Roger Company’ sells one product, and has provided the following variable and fixed estimates for…
A: Solution:- a)Calculation of the amount shown for revenue under the flexible and planning budget for…
Q: Ames Trading Company has the following products in its ending inventory. Cost per Market per Product…
A: Using LCM, the lower of the cost or market value is applied to the inventory valuation.
Q: You plan to invest in one of two home delivery pizza companies, High and Low, that were recently…
A: Earning per Share Earning per share is one of the important ratio tool which determine the value of…
Q: 2. National Beverages company estimated the sales as follows Al Dahirah ( in units ) Al Batinah (In…
A: Total estimated sales in units= Soft drinks+ Mineral water = 200000+250000+50000+80000 = 580000…
Q: Mr. Francis requires Rs. 20,000 at the beginning of each year from 2033 to 2037. The interest rate…
A: Calculation of Present value as in the beginning of 2033 of $ 20,000 to be paid in the beginning of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 351 $ 106 $ 114 Stereos 266 127 117 Amplifiers 332 102 111 Subwoofers 210 68 58 Security equipment Alarms 486 166 156 Locks 297 109 99 Cameras 218 328 338 Binocular equipment Tripods 191 90 100 Stabilizers 176 111 121 Required:1. Calculate the lower of cost or market for the inventory applied separately to each item.2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total LCM applied to: Item Units Cost Market Cost Market Individual Items Car audio…Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless telecommunications products and services. Qualcomm reported the following inventories (in millions) in the notes to recent financial statements: a.Why does Qualcomm report three different inventories? b. What costs are included in each of the three inventory accounts?A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 350 $ 105 $ 113 Stereos 265 126 116 Amplifiers 331 101 110 Subwoofers 209 67 57 Security equipment Alarms 485 165 155 Locks 296 108 98 Cameras 217 327 337 Binocular equipment Tripods 190 89 99 Stabilizers 175 110 120 Required:1. Calculate the lower of cost or market for the inventory applied separately to each item.2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.
- Coronado Machine Company maintains a general ledger account for each class of inventory, debiting such accounts for increases during the period and crediting them for decreases. The transactions below relate to the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $12,960, terms f.o.b. destination, was received and entered January 2, 2020. The receiving report shows that the materials were received December 28, 2019. 2. Materials costing $44,800, shipped f.o.b. destination, were not entered by December 31, 2019, “because they were in a railroad car on the company’s siding on that date and had not been unloaded.” 3. Materials costing $11,680 were returned to the supplier on December 29, 2019, and were shipped f.o.b. shipping point. The return was entered on that date, even though the materials are not expected to reach the supplier’s place of business until January 6, 2020. 4. An invoice for…Colin Davis Machine Company maintains a general ledger account for each class of inventory, debiting such accounts for increases during the period and crediting them for decreases. The transactions below relate to the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $8,100, terms f.o.b. destination, was received and entered January 2, 2020. The receiving report shows that the materials were received December 28, 2019. 2. Materials costing $28,000, shipped f.o.b. destination, were not entered by December 31, 2019, “because they were in a railroad car on the company's siding on that date and had not been unloaded.” 3. Materials costing $7,300 were returned to the supplier on December 29, 2019, and were shipped f.o.b. shipping point. The return was entered on that date, even though the materials are not expected to reach the supplier's place of business until January 6, 2020. 4. An…The following detail of transactions and balances were extracted from the records of Wasp Manufacturers a company manufacturing gas lights. The company make use of the periodic inventory system. During the year 20 400 units were completed.The company are registered for VAT and the VAT rate is 15%. 01.07.2019 Factory Equipment R720 800/ Accumulated depreciation R250 200 30.06.2020 Factory Equipment R910 000/ Accumulated depreciation R290 250 The depreciation rate on factory equipment is R5,50 per unit produced on all factory equipment. During the year equipment with a cost of R150 800 and accumulated depreciation on 1 July 20.19 of R62 800 were sold at a loss of R4 800. This equipment produced 1 700 units during the current financial year until it was sold. These units are included in the total number of units given above. New factory equipment was purchased on the 1 September 20.19. Calculate depreciation
- The following information is taking from Wei Min Enterprise for the year ended 31December 2020: Particulars RM Inventory at 1 January 2020:Raw materialsWork in progressFinished goods 25,40031,10023,260Purchases : raw materials 91,535Carriage on raw materials 1,960Direct labour 84,208Office salaries 33,419Rent 5,200Office lighting and heating 4,420Depreciation:Works machineryOffice equipment 10,2002,300Sales 318,622Factory fuel and power 8,120 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Rent is to be apportioned: factory 3⁄4; office 1⁄4ii. Inventory at 31 December 2020 was:a. Raw materials RM28,900b. Work in progress RM24,600c. Finished goods RM28,840Required: b) Prepare statement of comprehensive income for the year ended 31 December 2020.Details regarding the inventory of appliances on January 1, 20Y7, purchases invoices during the year, and the inventory count on December 31, 20Y7, of Amsterdam Appliances are summarized as follows: Purchases Invoices Model Inventory,January 1 1st 2nd 3rd Inventory Count,December 31 A10 — 4 at $ 64 4 at $ 70 4 at $ 76 6 B15 8 at $176 4 at 158 3 at 170 6 at 184 8 E60 3 at 75 3 at 65 15 at 68 9 at 70 5 G83 7 at 242 6 at 250 5 at 260 10 at 259 9 J34 12 at 240 10 at 246 16 at 267 16 at 270 15 M90 2 at 108 2 at 110 3 at 128 3 at 130 5 Q70 5 at 160 4 at 170 4 at 175 7 at 180 8 Instructions: 1. Determine the cost of the inventory on December 31, 20Y7, by the first-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different…The Rodelio Company conducted a physical count of inventory on December 31, 2023, with a cost of P3,370,000. The following items were included from the physical count: Goods held by Rodelio on consignment P420,000 Goods shipped by a vendor FOB Destination on December 31, 2023 and was received by Rodelio on January 5, 2024. 850,000 Goods purchased FOB Shipping Point was shipped by the supplier on December 31, 2023 and received by Rodelio on January 4, 2024. 770,000 Cost of goods shipped by Rodelio FOB Destination to a customer on December 31, 2023 and was received by the customer on January 2, 2024. 370,000 Cost of goods shipped by Rodelio FOB Shipping Point to a customer on December 31, 2023 and was received by the customer on January 5, 2024. 590,000 Cost of goods shipped by Rodelio to a customer on December 31, 2023 on an installments agreement (Rodelio Company believed that the collectability of the installment is reasonably assured) 340,000…
- You are reviewing the inventories of Sheep-Ahoy Company and found the following items: In the shipping room was a product costing P 264,000 marked "Hold for shipping instruction". This item was not included in the count although the purchased order of the customer was received on December 10, 2022. Actual shipment and billing happened on January 2, 2023. On December 28, goods costing P 232,960 were shipped to Holy Cow Company. The invoice accompanying the goods with selling price of P 300,000 was marked "on consignment". These goods were excluded from the inventory at year end. The company received merchandise costing P 92,500 on January 3, 2023. The invoice was received and recorded on January 4, 2023 with FOB shipping point ter. Shipment was made on December 31. The goods were included in the year-end inventory although these were not yet received when the physical count was taken. A customized product of a VIP customer was completed and in the shipping room at year-end. Actual…On December 1, 20x1, the warehouse of A Company and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following data:Beginning inventory - 18,850.00Payable, beginning - 7,500.00Payable, November 30 - 1,980.00Payments to supplier - 51,450.00Transportation in - 4,760.00Purchase returns - 1,570.00Sales up to November 30 - 75,200.00Sales returns - 5,300.00Sales discounts - 3,300.00GPR based on sales - 25%Additional information: Goods in transit as of November 30, 20x1 amounted to P5,000 and materials damaged by flood can be sold at a salvage value of P2,580. Inventory loss isPalmer Corporation is a manufacturing concern that uses a perpetual inventory system.The following data on the material inventory account is provided for 2009. Material balance P 275,000Other debits to the materials account during the year 825,000Increase of ending over beginning inventory 55,000 How much is the cost of materials issued to production