ending inventory price date end of year prices index dec 31 2016 69400 100 dec 31 2017 102080 116 dec 31 2018 110208 128 dec 31 2019 123816 132 dec 31 2020 116058 138 Using the dollar-value LIFO method, compute the ending inentory for 20
Q: he S. Sirap Co. acquired
A: The relative fair market value approach is used to divide the purchase price in accordance with the…
Q: Prepare an adjusted trial balance at February 28.
A: Adjested trial balance is a report.Which is prepared at the end of accounting period.It shows the…
Q: Davidson Yachts is a small private company founded by two businesspeople who are friends and avid…
A: Stockholders’ equity refers to the ownership interest in the business. It is the claim of the owners…
Q: Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31,…
A: Answer:- Consolidation journal entries:- The consolidation journal entries are the journal entries…
Q: The following information is from Darden Restaurants Annual Report. Use the information presented in…
A: Sales mix percentage is the number of product sales divided by the number of total products sold.…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: In the case of construction contracts revenue and gross profit are recognized on the basis of the…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150,…
A: Constraint resources refer to scarce resources. If a company has a scarcity of resources then, the…
Q: At the beginning of 2025, Tamarisk Industries had 26,000 shares of common stock issued and…
A: Earnings per share commonly known as EPS are computed by dividing net profit by the total number of…
Q: PB 15. LO 4.4 Prepare an adjusted trial balance from the following account information, considering…
A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.Assets…
Q: Choose the term that best describes static data? O Static data does not change once it is created. O…
A: static data does not change once it is createdThe best describes static data does not change once it…
Q: Required information [The following information applies to the questions displayed below] Lina…
A: The Modified Accelerated Cost Recovery System (MACRS) has been developed by the Internal Revenue…
Q: Lakeview Apartments is an 800-unit apartment complex. When the apartments are 90% occupied, monthly…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Monty Corporation has the following accounts included in its December 31, 2025, trial balance:…
A: The balance sheet represents the Financial position of the business with assets and liabilities on a…
Q: Manny Gill is an entrepreneur who started West Secure, a business that provides a number of security…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: Required information Problem 11-50 (LO 11-5) (Algo) [The following information applies to the…
A: A section 1231 gain is defined as the difference between a section 1231 property's tax basis and its…
Q: The Diversified Portfolio Corporation provides investment advice to customers. A condensed income…
A: Statement of Cash Flows :— It is statement of financial position which shows change in cash &…
Q: Waterway Company completed its first year of operations on December 31, 2025. Its initial income…
A: Operating activities are those which report the cash inflows and outflows from the daily operations…
Q: Required information [The following information applies to the questions displayed below.] On July…
A: Consolidated balance sheet-The financial statement which shows the financial position of the parent…
Q: Attempt in Progress Sheffield Corporation began operations on January 2. Its year end is December…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Highlands Company uses the weighted-average method in its process costing system. It processes wood…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Required information [The following information applies to the questions displayed below.] At the…
A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityEvery…
Q: Required information [The following information applies to the questions displayed below.] Doyle…
A: 1. Accounting Equation -Accounting Equation is calculated using following equation -Assets =…
Q: Arabica Highland Coffee Company roasts and packs coffee beans. The process begins by placing coffee…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Assume Annie’s Homemade divides its total annual sales of $650,000 into two sales channels: in-store…
A: The break-even point is where the revenue is equal to cost. It means a situation of no profit no…
Q: Data concerning a recent period’s activity in the Prep Department, the first processing department…
A: The total cost of ending work in process inventory is determined by multiplying the cost per…
Q: Calculate the amount of retained earnings as at June 30, 2020. Retained earnings at June 30, 2020 $…
A: The income statement and balance sheet are the important financial statements of the business. The…
Q: Brodrick Company expects to produce 20,700 units for the year ending December 31. A flexible budget…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: n Year 1, Kim Company sold land for $105,000 cash. The land had originally cost $47,000. Also, Kim…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: A company has the following purchases and sales during October. Using the FIFO periodic inventory…
A: Lets understand the basics.There are various methods through which inventory valuation is generally…
Q: Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total…
A: Contribution margin is the difference between total sales revenue and total variable expenses,…
Q: Prepare Waterway's journal entries to record the $81.000 of actual returns on October 10, 202 the…
A: Journal entries provide the cornerstone of a company's accounting records, offering a chronological…
Q: Incredible Sound, Inc. (ISI) is a manufacturer of stereo speaker systems. The company prepares…
A: Internal controls are the systems, guidelines, and practices that a business uses to guarantee the…
Q: Stream Launch Company reports the following components of stockholders' equity on January 1. Common…
A: A journal entry is a record of a business's financial transactions kept in its accounting books. An…
Q: Sunland Company had the following Shareholders' Equity accounts as of May 1, 2023: Share capital:…
A: The company issue two type of shares which are common and preferred. The common shareholders refer…
Q: Required information [The following information applies to the questions displayed below.] Hudson…
A: Variable costs are those costs which changes along with change in sales activity level. Contribution…
Q: Campbell Car Wash, Inc. expected to wash 1,000 cars during the month of August. Washing each car was…
A: 1. Labor variance: The difference between actual labor costs and budgeted or standard labor costs,…
Q: March 1 Bal., 8,100 units, 3/5 completed 31 Direct materials, 145,800 units 31 Direct labor 31…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Urban Life Ltd. sponsors a defined benefit pension plan for its employees. It is now the 20X9 fiscal…
A: A "net defined benefit" is a concept related to employee retirement benefits, particularly in the…
Q: 0 Required Information [The following information applies to the questions displayed below] Ramos…
A: Cost of goods sold = Cost of goods sold for cash + Cost of goods sold on account - goods returned…
Q: On January 1, a company purchased 6%, 15-year corporate bonds for $66,166,472 as an investment. The…
A: Bonds allow organizations to raise funds to support operations, initiatives, or investments. In…
Q: Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV…
A: Section 1033 addresses the deferral of taxation when dealing with replacement property, which can be…
Q: Assume the following (1) selling price per unit = $30. (2) variable expense per unit = $18, and (3)…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Homestead State Bank has the following financial information. Cash Securities Investments Net Loans…
A: ROE means return on equity. It is the measure which helps to determine the amount of return that is…
Q: Use the following information available as of December 31 to prepare an income statement for the…
A: Income statement is one of the financial statements that shows the profitability, total revenue and…
Q: 1 An employee works 42 hours (42-40 were overtime hours) during a workweek in December of 2021. He…
A: Given information,Regular Hours: 40 hoursOvertime Hours: 42 hours - 40 hours = 2 hoursRegular Hourly…
Q: Bethany Liang delivers parts for several local auto parts stores. She charges clients $3.65 per mile…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: If Roten Rooters, Incorporated, has an equity multiplier of 1.30, total asset turnover of 1.37, and…
A: Return on equity is a familiar financial ratio that indicates the total amount of return earned for…
Q: Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information…
A: The pre-determined overhead rate is calculated as the estimated overhead cost divided by the…
Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $990.…
A: There are two types of expenditure (1) Revenue Expenditure - these are the expenditures which are…
Q: On November 1, 2022, Wenger Company paid its landlord $4,080 in cash as an advance rent payment on…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
ending inventory | price | |||
date | end of year prices | index | ||
dec 31 2016 | 69400 | 100 | ||
dec 31 2017 | 102080 | 116 | ||
dec 31 2018 | 110208 | 128 | ||
dec 31 2019 | 123816 | 132 | ||
dec 31 2020 | 116058 | 138 | ||
Using the dollar-value LIFO method, compute the ending inentory for 2020 |
Step by step
Solved in 3 steps
- Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020. Early in 2020, McLelland discovers that the December 31, 2019 ending inventory was overstated by $20,000. For simplicity, ignore taxes. Required: 1. What is the correct net income for 2019? For 2020? 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020?(Appendix 8.1) Inventory Write-Down Frost Companys inventory records tor the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a periodic inventory system. Purchases for 2019 were 100,000 and for 2020 were 110,000. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the (a) allowance method and (b) direct method. 2. Prepare the cost of goods sold section of the income statement and show how the company would record the inventory on its balance sheet for 2019 and 2020 under the (a) allowance method and (b) direct method. 3. Next Level Refer to your answer for P8-3. How does the use of a periodic inventory system versus a perpetual inventory system affect the valuation of inventory and the amount reported as income?Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records: Required: Calculate the dollar-value LIFO inventory at the end of each year. Round to the nearest dollar.
- (Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?( Appendix 6B) Inventory Costing Methods Jet Black Products uses a periodic inventory system. For 2018 and 2019, Jet Black has the following data: All purchases and sales are for cash. Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68A, compare your answers. What are the differences? Be sure to explain why any differences occurred.(Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or net realizable value for each of the following alternatives: a. allowance method, periodic inventory system b. direct method, periodic inventory system 2. Next Level Refer to your answer for P8-2. How does the use of the periodic inventory system affect the write-down of inventory to the lower of cost or net realizable value?
- Cameron Corp. uses the dollar-value-LIFO (DVL) inventory costing method. 2020 is the base year. Information regarding inventory for 2020 – 2022 is as follows: Date Ending Inventory at Current Prices (FIFO) Price Index 12/31/20 725000 100% or 1.0 12/31/21 814000 110% or 1.10 12/31/22 966000 115% or 1.15 What should be the cost of inventory on 12/31/22 using the DVL method? Round all calculations to the nearest whole dollar.Presented below is information related to Nash Company. Date Ending Inventory(End-of-Year Prices) PriceIndex December 31, 2017 $ 73,200 100 December 31, 2018 128,876 116 December 31, 2019 124,608 132 December 31, 2020 140,426 143 December 31, 2021 168,476 154 December 31, 2022 199,520 160 Compute the ending inventory for Nash Company for 2017 through 2022 using the dollar-value LIFO method. Ending Inventory 2017 $enter a dollar amount 2018 $enter a dollar amount 2019 $enter a dollar amount 2020 $enter a dollar amount 2021 $enter a dollar amount 2022 $enter a dollar amountPresented below is information related to Langston Hughes Corporation. Price 0Index0 LIFO 0Cost0 0Retail0 Inventory on December 31, 2020, when dollar-value LIFO is adopted 100 $36,000 $ 74,500 Inventory, December 31, 2021 110 ? 0100,100 Instructions Compute the ending inventory under the dollar-value LIFO method at December 31, 2021. The cost-to-retail ratio for 2021 was 60%.
- Date Bought Date Sold01 March 2020 15 at N$ 12.50 06 March 2020 2005 March 2020 25 at N$ 12.80 15 March 2020 2017 March 2020 40 at N$ 13.20 24 March 2020 2023 March 2020 20 at N$ 13.60 30 March 2020 2031 March 2020 12 at N$ 14.10 Selling price: N$ 20Use the above information to calculate closing inventory that would be shown using the below methods for 31 March 2020 financial year a) FIFO and AVCO and prepare the trading statement as at 31 March 2020Bond Company reported the following inventory data:Year Inventory (in millions)2016201720182019$2,500$2,350$2,600$2,170Use 2016 as the base year. The trend percentage in 2019 is closest toa. 83%.b. 87%.c. 92%.d. 115%.Use the following information regarding Skysong, Inc. and Kingbird, Inc. to answer the question “Which amount is equal to Skysong, Inc.'s "days in inventory" for 2022 (to the closest decimal place)?” (Use 365 days for calculation.) * Year Inventory Turnover Ending Inventory Skysong, Inc. 2020 * $26800 * 2021 10.6 $31400 * 2022 10.2 $32400 * Kingbird, Inc. 2020 * $26340 * 2021 8.5 $25230 * 2022 9.2 $23010