Question One : define inventory costing methods and compare between them in term of cost of goods sold, ending inventory and tax
Q: You are explaining time value of money factors to your friend. Which factor would you explain as bei...
A: The Time Value of Money (TVM) appears to be an important financial theory based on the premise that ...
Q: Mr. John started a T-shirts business to be known as "John T-shirts". He has provided you with the fo...
A: Expense refers to the cost that is incurred in return of acquiring goods or services.
Q: MSI is considering outsourcing the production of the handheld control module used with some of its p...
A: Lets understand the basics. When there is decision requires between the make a product or buy a prod...
Q: ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in...
A: Indirect material cost is the cost of materials used in production that is not directly traceable to...
Q: Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is ...
A: The break even sales are the sales where business earns no profit no loss during the period. The con...
Q: On January 1, 2020, Nun Company had ordinary and preference shares outstanding. The incorporators or...
A: Retained earning is the amount of profit accumulated over a period of time. The ending retained earn...
Q: Explain the situation that a company (in the extractive industry) expenses all exploration and evalu...
A: An entity is required to consider when it has been deciding on its accounting policies for explorati...
Q: Fiona cleans offices. She is allowed 5 seconds per square foot. She cleans building A, which is 3,03...
A: Answer: Yes Since the time taken t= 7.58 hours required to complete both buildings is less than the ...
Q: Elise and Carlo would like to accumulate three times their monthly expenses in monetary assets. They...
A: Given that: Monthly Expense = Php 4500 Monetary Asset = 3 times x Monthly Expense
Q: a. Enter these transactions in the cash book and ledgers. Balance the cash book and Duleep’s account...
A: Cash A/c Date Particular Amount Date Particular Amount Nov-01 To Mahendra Capi...
Q: Discuss the scope and penalties of Sarbanes Oxley Act.
A: The Sarbanes Oxley Act or the SOX was brought to force as a response to the substantial increase in ...
Q: Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of in...
A: A partner who recognises a pre-contribution gain under S737 has an increase in the outside basis of ...
Q: Use the following information to calculate total ending cash and equivalents: Beginning Cash and Equ...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements. ...
Q: A firm sold goods worth ₹ 5,00,000 and it's gross profit is 20 percent of sales value. The inventory...
A: Inventory Turnover Ratio = Cost of goods sold / Average stock Inventory Holding Period = 365 d...
Q: The following costs were incurred in February: Direct materials = PhP2,150,000 Direct labor = PhP8...
A: The question requires to calculate conversion costs during the month of February . Conversion costs ...
Q: A company uses two major material inputs in its production.
A: In this question, we have to calculate the probability of the cost of material1 and material 2
Q: What is the name of the account used to record purchases of merchandise inventory?
A: The concept of merchandise inventory is associated with cost of goods that is in hand and available ...
Q: On October 1, Jerry's Lighting purchased merchandise with a list price of $8,700 with credit terms o...
A: Total amount paid = Net Purchase - discount amount where, Net Purchase = list price - purchase retur...
Q: On January 1, 2020, Nun Company had ordinary and preference shares outstanding, The incorporators or...
A:
Q: e: resident taxpayers and non-resident taxpayers. Individual income tax rates applicable on resident...
A: The company's income statement is prepared for arriving at the profits generated by the company duri...
Q: How much is the accumulated depreciation at the 10th year.
A: As the method of depreciation is not mentioned in the question, straight line method of depreciation...
Q: Problem 3 J.A.N., Inc. uses a job order cost system. On May 1, the company has a balance in Work in ...
A: Solution Manufacturing cost is the sum of the costs of all resources consumed in the process of maki...
Q: Blue Sky Incorporated listed the following data for the current year: Budgeted factory overhead Budg...
A: Predetermined overhead rates are used to allocate the overhead expenses. It can be calculated on the...
Q: The following is a list (in random order) of KIP International Products Company’s December 31, 2019,...
A: A balance sheet is a financial statement that shows the assets, liabilities, and shareholder equity ...
Q: Use the information provided to create a standard cost card for production of one glove box switch. ...
A: A standard cost card specifies the typical amount of materials, labour, and overhead required to mak...
Q: 7) When a person does an internal search for product information and already has sufficient informat...
A:
Q: Each of the following are true of relevant information except O different alternatives can be compar...
A: Accounting is the process of recording, classifying, summarising and reporting accounting informatio...
Q: Tl1e shareholders’ equity section of Gaines industries’s balance sheet appeared as follows at Decemb...
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the quest...
Q: Francis Company has 24,000 shares of common stock outstanding at the begining of 2019. Francis issue...
A: 1. Calculation of weighted average number of outstanding shares as,
Q: For each independent situation below, calculate the missing values.
A: Gains and losses seem to be the contrasting financial outcomes created by a company's non-primary ac...
Q: Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engine...
A: Bonds were issued for $ 771000 Duration = 25 years Rate of interest = 13% Gain on redemption of bond...
Q: On January 1, 2019, Caswell Company signs a 10-year cancelable (at the option of either party) agree...
A: Given:rental payments=$10,000 Executor costs = $7,000 annually
Q: AA's investment in the partnership is the AA Company. The balance sheet of AA Company on the date of...
A: Partners Capital Under Bonus Method Under the Bonus method the determination of Partners by taking u...
Q: During the month of March, direct labor cost totaled PhP850,000 and direct labor cost was 70% of pri...
A: Prime cost = Direct labor cost/Percentage of direct labor cost on prime cost
Q: c. Purchased Php2,500 worth of supplies on accounts (on credit) d. Returned defective piece of equip...
A: Assets = Liabilities + Owner’s equity
Q: Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Tra...
A: Common stock- Individuals who own common stock have a claim on profits (dividends) and the ability t...
Q: A $1,000 Par, Disney bond with a 3.5% Coupon will mature in 10 years. The coupon payments are made a...
A: Price of the bond is the calculated as the present value of coupon payment plus, the present value o...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Lets understand the basics. Depletion rate is a rate at which depletion is calculated for the consum...
Q: 3. Refer to the problem below. What amount is credited to Retained Earnings upon settlement if the s...
A:
Q: Which of the following is not an element of the financial statements?A. future potential sales price...
A: Financial statements seem to be reports generated by a corporation's management to demonstrate the c...
Q: Flounder Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two...
A: Breakeven sales revenue is that level of sales revenue at which business is only recovering it's tot...
Q: Which of the following expenses apply to or may be claimed by cash basis taxpayers? a. Depreciation...
A: Under a cash basis, the cash received and cash paid is considered for calculating the income and exp...
Q: Semiconductor had receiv rom the incoming quality tion centers. Below is give
A: Total quality management (TQM) is the ongoing process of identifying and reducing or eliminating pro...
Q: The following trial balance was taken from the books of Dumbo Trading at 31 December 2021. Dumbo Tra...
A: Comprehensive Income statement is a income statement which contains income and expenses that have no...
Q: Provisions Grocery Store purchased merchandise on account from Federal Grocers for $500.00 on April ...
A: Total amount paid = Net Purchase - discount amount + freight charges where, Discount amount = Net Pu...
Q: Cash dividends on the $10 par value common stock of Garrett Company were as follows: 1st quarter of ...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: Given the following list of accounts with normal balances, what are the trial balance totals of the ...
A: Introduction: Trial balance: All final ledger accounts balances are posted in Trial balance to check...
Q: Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture t...
A: Total cost of goods sold = Cost of goods sold per unit * Number of units produced Gross margin = Tot...
Q: 3.16 After six months of operations, the partnership of Pat, Neri, and Cip made a profit of P 372,00...
A: The statement of partner's capital is a financial report that shows the changes in total partners' c...
Q: Requirement b. Which of the transactions would most iikely be co: Transactions Canyon Outdoor's oper...
A: In auditing, a related party is a principal owner of the audit client company, an affiliated company...
Step by step
Solved in 2 steps with 1 images
- Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
- Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).Using the following data, how should the inventory be valued under lower of cost or market? Original cost 1,350 Estimated selling price 1,475 Selling expenses 180
- Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).Using the following data, how should the inventory be valued under lower of cost or market? Original cost 1,350 Estimated selling price 1,475 Selling expenses 180LIFO and Inventory Pools On January 1, 2016, Grover Company changed its inventory cost flow method to the LIFO cost method from the FIFO cost method for its raw materials inventory. It made the change for both financial statement and income tax reporting purposes. Grover uses the multiple-pools approach under which it groups substantially identical raw materials into LIFO inventory pools. It uses weighted average costs in valuing annual incremental layers. The composition of the December 31, 2018, inventory for the Class F inventory pool is as follows: Inventory transactions for the Class F inventory pool during 2019 were as follows: On March 2, 2019, 4,800 units were purchased at a unit cost of 13.50 for 64,800. On September 1, 2019, 7,200 units were purchased at a unit cost of 14.00 for 100,800. A total of 15,000 units were used for production during 2019. The following transactions for the Class F inventory pool took place during 2020: On January 11, 2020, 7,500 units were purchased at a unit cost of 14.50 for 108,750. On May 14, 2020, 5,500 units were purchased at a unit cost of 15.50 for 85,250. On December 29, 2020, 7,000 units were purchased at a unit cost of 16.00 for 112,000. A total of 16,000 units were used for production during 2020. Required: 1. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2019. Show supporting computations in good form. 2. Prepare a schedule to compute the cost of Class F raw materials used in production for the year ended December 31, 2019. 3. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2020. Show supporting computations in good form.
- Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of ending inventory under LIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.