***** Inventory Valuation: If a company uses the LIFO (Last-In-First-Out) method for inventory valuation and purchases 100 units at $10 each, then purchases 150 more units at $12 each, what is the value of ending inventory if 120 units are sold? 2. Depreciation: A company purchases a delivery truck for $30,000 with a salvage value of $3,000 and an estimated useful life of 6 years. If the company uses the double-declining balance method, what is the depreciation expense for the second year? *** This question already posted and received correct answer. Kindly Don't answer.

*** Inventory Valuation: If a company uses the LIFO (Last-In-First-Out) method for inventory valuation and purchases 100 units at $10 each, then purchases 150 more units at $12 each, what is the value of ending inventory if 120 units are sold? 2. Depreciation: A company purchases a delivery truck for $30,000 with a salvage value of $3,000 and an estimated useful life of 6 years. If the company uses the double-declining balance method, what is the depreciation expense for the second year? * This question already posted and received correct answer. Kindly Don't answer.

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Description: ***** Inventory Valuation: If a company uses the LIFO (Last - In - First - Out) method for inventory valuation and purchases100 units at $10 each, then purchases 150 more units at $12 each, what is the value of ending inventory if 120 units aresold?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 16E: Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its...

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LIFO Liquidation Profit Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had the following purchases and sales of its single inventory item: In December 2020, the controller realized that because of an unexpected increase in demand, the company had sold 22,000 units but had purchased only 19,000 units during the year. In 2020, each unit had been sold for 19, and each unit purchased had cost 10. The income tax rate is 21%. Required: 1. Next Level If Hammond makes no additional purchases in 2020, how much LIFO liquidation profit will it report? 2. Prepare the appropriate annual report disclosures for 2020. 3. Next Level if Hammond purchases an additional 7,000 units in December 2020, how much income tax will the company save? 4. Next Level If Hammond purchases the additional 7,000 units, how much income tax has the company saved over the 4-year period by using LIFO instead of the FIFO cost flow assumption?
Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company’s ending inventory: Viking has 500 video games in stock. The games cost $36 each, but their year-end net realizable value is $28. Viking has 400 rolls of photographic film that are past the expiration date marked on the film’s box. The films cost $1.65 each and are normally sold for $3.30. To clear out these old films, Viking will drop their selling price to $1.30. There are no related selling costs. Viking has seven cameras in stock that have been used as demonstration models. The cameras cost $380 and normally sell for $480. Because these cameras are in used condition, Viking has set the selling price at $360 each. Expected selling costs are $15 per camera. a. Answer b. Answer c. Answer
I) ABC Ltd purchases a factory machine at $210,000 on January 1, 2018. ABC Ltd expects the machine to have a salvage value of $30,000 at the end of its 5-year useful life. Requirement: Prepare depreciation schedules for the declining balance using double the straight-line rate. ii) ABC Company has the following inventory, purchases, and sales data for August 2019. Inventory: August 1 200 units @ 4.00 Purchases: August 10 500 units @ 4.30 August 18 400 units @ 4.75 August 27 300 units @ 5.00 Sales: August 15 700 units August 25 300 units August 29 400 units Requirement: Under a perpetual inventory system, determine the cost of inventory on hand on August 31 and the cost of goods sold for August under the Average-cost method.
B.Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had beenpurchased at list price of $18 per unit and normally sells for $24 per unit.Additional information relating to the units in inventory: VAT – 10%; wharehousing cost - $0.55per unit; purchase discount - $0.40 per unit; carriage inwards - $0.60 per unit.Recently , Product X started to deteriorate but can still be sold for $24 per unit, provided thatsome rectification/re-packaging work is undertaken at a cost of $3 per unit.Required:At what amount would Product X be required to be stated on 30 June 2020? Provide detailedanalysis to support your answer.
AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year consisted of 10,000 units of the company’s one product. These units cost $15 each. During the year, 60,000 units were purchased at a cost of $18 each and 64,000 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 5,000 units at $18. What would be the effect of this purchase on income before income taxes? Would your answer be the same if the company used FIFO instead of LIFO?
Moore Company purchased an item for inventory that cost $20 perunit and was marked to sell at $30. It was determined that the replacementcost is $18 per unit. No purchases in the near future are anticipated. Usingthe lower-of-cost-or- market rule, the per unit valuation for inventoryshould be: A. $18.00 B. $20.00 C. $25.00 D. $30.00
Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had been purchased at list price of $18 per unit and normally sells for $24 per unit. Additional information relating to the units in inventory: VAT – 10%; wharehousing cost - $0.55 per unit; purchase discount - $0.40 per unit; carriage inwards - $0.60 per unit. Recently , Product X started to deteriorate but can still be sold for $24 per unit, provided that some rectification/re-packaging work is undertaken at a cost of $3 per unit. Required:At what amount would Product X be required to be stated on 30 June 2020? Provide detailed analysis to support your answer.
Building A is acquired on 1st January 2012 for RM800,000.00. It was depreciated using straight line method for 20 years. The first two years the company uses the cost model but adopt revaluation model afterwards. Revaluations were conducted every three years. Fair values at the date of revaluation were RM693,000.00 in 2014; RM607,500.00 in 2017 and RM490,000.00 in 2020. Give one example when inventory on hand at the reporting date not measured at cost. Prepare journal entries to record revaluations. Show detailed calculations to support your answer.
Poe, Co. uses LIFO for its inventory valuation. The original cost of Item #BB-8, the only inventory item of Poe, was $12,000. The current selling price and replacement cost are $13,500 and $9,500, respectively. Costs to sell are estimated to be $2,700. The normal profit margin is 10% of the original cost.
Emley Company has been using the average cost method of inventory valuation for 10 years, since it began operations. Its 2019 ending inventory was $40,000, but it would have been $60,000 if FIFO had been used. Thus, if FIFO had been used, Emley's income before income taxes would have been Select one: a. $20,000 greater in 2019. b. $20,000 less over the 10-year period. c. $20,000 greater over the 10-year period. d. $20,000 less in 2019.
At a lump -sum cost of $69,000 , Kyla Company recently purchased the following items for resale: Item M N No. of Items Purchased 4,000 2,000 6,000 Resale Price Per Unit $3.75 12.00 6.00 he appropriate cost per unit of inventory is : m n o 5.75. 5.75`. 5.75 3.75. 12.00. 6.00 3.38. 10.80. 5.40 3.45. 11.04. 5.52