Identify false statement(s) about estimating ending inventory using the retail inventory method.  1. Average cost, conventional retail, FIFO and LIFO result in different figures of estimated ending inventory at retail. 2. FIFO and LIFO make distinction between beginning inventory and inventory transactions in the current period, whereas average cost and conventional retail do not make this distinction. 3. LIFO estimated ending inventory may include the beginning inventory and the current period's inventory, whereas FIFO estimated ending inventory includes the current period's inventory only. 4. Average cost, conventional retail, FIFO and LIFO include markdowns in computing cost-to-retail ratio.

Q: Clark Company acquired 15% of the 500,000 shares of common stock of Davis Company at a total cost of...

A: Solution Journal is the primary book . All transaction are recorded in that book according to chrono...

Q: not traded th

A: Capital Gain Tax = 15% Capital Gain on Real Property situated in Philippines = 6% higher of the Sell...

Q: The fringe benefit tax by nature is a final tax. b) The personal expenses of a managerial employee s...

A: a. According to section 33(A) of the NIRC fringe benefit tax   on employees income to the withheld b...

Q: 0 Variable Manufacturing Overhead ……………. $7.00 Fixed Manufacturing Overhead…………........................

A: The margin of Safety : The premise behind the margin of safety is that an investor should only acqui...

Q: The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and...

A: Deferred tax: Deferred tax is the effect of timing or temporary differences. The difference between ...

Q: The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 20...

A: Inventory cost by the average cost method=Ending Inventory Units×Total Cost Goods Available for Sale...

Q: able.

A: Here discuss about the tax burden which are incurred in the insurance policy after the outlive of th...

Q: LGM will purchase all of the net assets of DMF by transferring its shares in YYZ. Because of the con...

A: Accounting's idea of retained earnings is crucial.  The word refers to a company's previous earnings...

Q: Calculate the amount of increase or decrease and the percent change of each title (round to nearest ...

A: Horizontal analysis is prepared to calculate the variance from the previous year by showing an incre...

Q: On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9 ye...

A: When a company revaluates the value of its fixed assets on the basis of Fair Market Value, the diffe...

Q: Statement 1: When a taxpayer receives a car from a corporation for furnishing the names of potential...

A: Solution Taxable income is the income of which you are given tax . The income after deductions.

Q: Crandall Distributors uses a perpetual inventory system and has the following data available for inv...

A: Solution   Calculation of goods available for sale- = (110*7.1)+(575*7.2)+(680*7.5)+(230*7.7). = 117...

Q: Fanning is a retail company specializing in men's hats. Its budget director prepared the list of exp...

A: Selling and Administrative Expenses Selling and administrative expenses which is considered to be im...

Q: The company has a maximum production capacity of 100,000 units per year. Operating at normal capacit...

A: In this question, We will calculate the normal capacity of the business.  

Q: What are the principal reasons for using a special payroll bank account

A: A payroll account is a separate bank account for your business that is exclusively used to pay emplo...

Q: Garry Santos, company chief accountant: “Mark, you are asking to8 Accounting principles are designed...

A: Ethical issues in Accounting There are many types of ethical issues which are incurred to the busine...

Q: The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of ...

A: Journal is the book of original entry in which all the transactions relating to business are recorde...

Q: At the end of the current year, $36,920 of fees have been earned but have not been billed to clients...

A: Accrued Fees Revenue account will be debited with $ 36,920 as it is an Asset (being fees earned and ...

Q: An entrepreneur of a custom sign company is reviewing reports showing the cost of printing machines,...

A: The key purpose of accounting is providing information to the users. This is done by using the repor...

Q: 1. Prepare Appropriations, Encumbrances, Expenditure and Fund Balance Ledger from the following info...

A: Ledger- A ledger is a book or assortment of accounts in which account dealings are recorded. Every a...

Q: Baird, Inc. sells fireworks. The company's marketing director developed the following cost of goods ...

A:  Inventory purchase budget means = Cost of goods sold + Ending Inventory - Beginning Inventory   ...

Q: (d) At 30 June 2002 a company had Klm 8% loan notes in issue, inter yearly on 30 June and 31 Decembe...

A: Statement of comprehensive income The statement of comprehensive income includes revenue and expendi...

Q: Beginning inventory, purchases, and sales data for tennis rackets are as  follows: April  3   Inven...

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell ou...

Q: Using the following balance sheet and income statement data, what is the debt to assets ratio? Curre...

A: Formula: Debt to Assets ratio = ( Total liabilities / Total Assets ) x 100

Q: ophia derived a total compensation of P350,000. She also derived income from the sale of her persona...

A: This is a multiple-choice question in which we have to select the correct option

Q: Cash dividends are paid based on the number of shares: a. outstanding. b. authorized. c. issued

A: As per IAS 33 Earnings per share standard  Earnings per share = Net income available to ordinary equ...

Q: Financial information for three independent cases is as follows:a. The liabilities of Dent Company a...

A: The accounting equation seems to be the foundation of the balance sheet as well as the fundamental p...

Q: 20Y7 Dec. 7. Received from Unitarian Clothing and Bags Co., on account, a $60,000, 60-day, 7% note d...

A: Interest = Amount of notes receivables * Rate of interest * number of days / 360 Number of days from...

Q: Identify a false statement:  a. If taxpayer derives income from employment only, any other income su...

A: Taxable income refers to the income on which the taxpayer is liable to pay tax to the collecting aut...

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by wa...

Q: How much is the goodwill to be presented on the consolidated statement of financial position as of t...

A: Calculation of Goodwill/ Capital Reserve to be presented on the consolidated financial statement as ...

Q: Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of it...

A:   Opportunity cost is the cost of a missed opportunity and so it is always a differential cost. In a...

Q: Globalization rule in determining the taxable income of the taxpayer means that

A: c. The regular income of taxpayer from employment and business or profession, including other income...

Q: 28 Total sleep time of college students. In Example 4, the total sleep time per night among college ...

A: Solution:- Given, Mean μ = 6.78 hours  Standard deviation σ = 1.24 hours SRS of size n = 150     

Q: The below information is related to ABC Corporation: Common Stock, $1 par value $4,500,000 Paid-in...

A: Total capital  contributed means amount contributed by stockholders to company. It can be through  I...

Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P1...

A: Cost of goods sold=Beginning inventory+Net purchases-Ending inventory

Q: An investment of S110.000 in safe 10-year corporate bonds yieids an average of 12% per year, payable...

A: In this question, we will find out that how much his $110,000 be worth in 10 years in todays purchas...

Q: 3. NASA is considering two materials for use in a space vehicle. The costs are shown beloW. Which sh...

A: Present Worth=-Intial cost-Annual cost×(P/A,i,n)+Salvage value×(P/F,i,n)

Q: Fox Corporation had the following stockholders' equity amounts on January 1,: Preferred Stock, 5%, $...

A: For the purpose of recording transactions of the business, they are recorded in a journal first. Whe...

Q: Compute the taxable income of Domex subject to the regular corporate income tax.

A:   Domex Corporation - Resident foreign Corporation    Phils  Abroad Gross Income from Business ...

Q: CengageNOWv2 | Online teachirn X ow.com/ilrn/takeAssignment/takeAssignmentMan.uo?invoker=&takeAssign...

A: Operating income/(loss) percentage=Operating income/(loss)Sales×100

Q: Which of the following is least likely to affect the preparation of the purchases budget? A.The amo...

A: Purchase Budget: A purchases budget specifies the amount of inventory that a company is required to ...

Q: Financial data for Joel de Paris, Incorporated, for last year follow:   Joel de Paris, Incorporate...

A: Solution  Calculation of Total operating assets-   Beginning balance Ending balance  Cash 12800...

Q: The Following fringe benefits shall not be subject to basic tax or fringe benefit, except:  a) Fring...

A: Fringe Benefit Tax Fringe Benefit Taxes which are taken from the employee of the business entity to ...

Q: Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue an...

A: Solution:- Given, AirQual Test Corporation provide on-site ait quality testing services. The company...

Q: Determine the number of days from Actual Time to Approximate Time Loan date - July 31, 2021 Due da...

A: Actual days are the number of actual days in a month e.g. April - 30 days, may - 31 days. Approximat...

Q: Using the following information: The bank statement balance is $5,002. The cash account balance is ...

A: Bank reconciliation statement is a statement in which reconciliation between the balance stated in t...

Q: Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows:             ...

A: Journal Entries Date Account Titles and Explanation  Debit   Credit  A Depreciation Expenses  $...

Q: St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1...

A: In this question, we will have 2 requirements: Prepare the journal entries for December 2019. Assume...

Q: ABC Corporation presented the following information in its 2021 statement of financial position: Com...

A: treasury stock is the stock purchased by the company from the open market.  treasury stock will redu...

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.