Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.8E
Dollar-Value LIFO, LIFO Reserve. CWB Teleconcepts, Inc. manufactures and distributes three models of handheld devices the Flame, the Globe, and the HD3 CWB uses the dollar-value UFO method information for 2018, 2019, and 2020 is presented in the following table.
Description | Base Year 2018 | 2019 | 2020 | |||
Inventory | Units | Total FIFO Cost | Units | Total FIFO Cost | Units | Total FIFO Cost |
Flame | 5,000 | $450,000 | 7000 | $658,000 | 4.000 | $392,000 |
Globe | 6,000 | 660,000 | 5,000 | 580,000 | 3.000 | 375,000 |
HD3 | 3,000 | 450,000 | 5,000 | 800,000 | 1.000 | 170,000 |
The cumulative price indices for 2018, 2019, and 2020, respectively are 1.00, 1 056, and 1.1155.
Required
- a. Compute the company s ending inventory using dollar-value LIFO tor each year. Treat the three models as one group. Round to the nearest dollar,
- b. Prepare the
journal entry required to adjust the LIFO reserve for each year.
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Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000 .
Compute for the following:
The Sales Price factor shows a variance of?
The Cost Price Factor shows a variance of?
The Sales-mix Factor shows a variance of?
Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000. The Sales-mix Factor shows a variance of?
A. 2500F
B. 4000U
C. 5750 F
D. 5750 U
20. Oreo Company started operations in 2021. The following data are abstracted from the purchases and
sales records:
2021
2022
2023
Units purchased
Number of units sold 100,000 145,000 130,000
160,000 155,000 135,000
Unit cost
40
50
60
The entity used FIF0 method. What amount should be reported as cost of goods sold for 2023?
7,800,000
O 7,100,000
7,700,000
8,300,000
Chapter 10 Solutions
Intermediate Accounting, Student Value Edition (2nd Edition)
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