INTERMEDIATE ACCOUNTING RMU 9TH EDITION
9th Edition
ISBN: 9781260998726
Author: SPICELAND
Publisher: MCG
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Chapter 20, Problem 20.2BYP
(1)
To determine
Change in inventory methods:
Change in inventory method is said to be the difference between the previous year’s ending inventory and the current year’s ending inventory.
Disclosure Note:
Disclosure notes are added in the footnotes of the financial statement of a company. These notes contain certain information about the company which cannot be enclosed in the face of the income statement, balance sheet, statement of cash flows, and statement of changes in equity.
To Prepare: the disclosure note for M Department Stores which will be included in the 2018 financial statements.
(2)
To determine
To Explain: the reason for which the cumulative effect of the change on prior years’ income is not determinable.
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Chapter 8 Perform (ASAC LO 5 and BSAC LO 2)
Kingbird Company began operations late in 2024 and adopted the conventional retail inventory method.
Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventory
for 2024 was $13,708 under both the conventional retail method and the LIFO retail method. At the end of
2025, management wants to compare the results of applying the conventional and LIFO retail methods.
There was no change in the price level during 2025. The following data are available for computations.
Cost
Inventory, January 1, 2025
Sales revenue
Net markups mu
Net markdowns mo
Purchases
Freight-in
Estimated theft
(b) The LIFO retail method.
Ending inventory at cost
Ending inventory at retail
Cost
$
$13,708
$
63,900
5,888
Retail
Compute the cost of the 2025 ending inventory under both:
(a) The conventional retail method.
$20,200
77,000 mu
9,900 mD
1,800 ex Beg
Ending inventory using the conventional retail method $
87,500
2,200
27336
40800…
Question 12 of 13
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Current Attempt in Progress
Tamarisk Hardware reported cost of goods sold as follows.
2021
2022
Beginning inventory
$ 23,000
$ 34,000
Cost of goods purchased
150,000
182,500
Cost of goods available for sale
173,000
216,500
Less: Ending inventory
34,000
37,500
Cost of goods sold
$139,000
$179,000
Tamarisk made two errors: (1) 2021 ending inventory was overstated by $3,550, and (2) 2022 ending inventory was understated by
$6,600.
Compute the correct cost of goods sold for each year.
2021
2022
Cost of goods sold
2$
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Question 41 of 50
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The following information was available from the inventory records of Marigold Corp. for January:
Units
Unit Cost
Total Cost
Balance at January 1
9200
$9.73
$89516
Purchases:
January 6
5800
10.33
59914
January 26
7900
10.75
84925
Sales
January 7
(7700 )
January 31
(10900 )
Balance at January 31
4300
Assuming that Marigold does not maintain perpetual inventory records, what should be the inventory at January 31, using the
weighted-average inventory method, rounded to the nearest dollar?
O $45298.
O $44006.
O $44105.
O $44598.
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Chapter 20 Solutions
INTERMEDIATE ACCOUNTING RMU 9TH EDITION
Ch. 20 - Prob. 20.1QCh. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3QCh. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8QCh. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...
Ch. 20 - Prob. 20.11QCh. 20 - Describe the process of correcting an error when...Ch. 20 - Prob. 20.13QCh. 20 - If it is discovered that an extraordinary repair...Ch. 20 - Prob. 20.15QCh. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; average cost method...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 Irwin, Inc.,...Ch. 20 - Prob. 20.5BECh. 20 - Book royalties LO204 Three programmers at Feenix...Ch. 20 - Warranty expense LO204 In 2017, Quapau Products...Ch. 20 - Change in estimate; useful life of patent LO204...Ch. 20 - Prob. 20.9BECh. 20 - Error correction LO206 In 2018, internal auditors...Ch. 20 - Prob. 20.11BECh. 20 - Error correction LO206 In 2018, the internal...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change from the treasury stock method to retired...Ch. 20 - Change in principle; change to the equity method ...Ch. 20 - Prob. 20.5ECh. 20 - FASB codification research LO202 Access the FASB...Ch. 20 - Change in principle; change in inventory cost...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 For...Ch. 20 - Change in depreciation methods LO203 The Canliss...Ch. 20 - Book royalties LO204 Dreighton Engineering Group...Ch. 20 - Loss contingency LO204 The Commonwealth of...Ch. 20 - Warranty expense LO204 Woodmier Lawn Products...Ch. 20 - Prob. 20.15ECh. 20 - Accounting change LO204 The Peridot Company...Ch. 20 - Change in estimate; useful life and residual value...Ch. 20 - Classifying accounting changes LO201 through...Ch. 20 - Error correction; inventory error LO206 During...Ch. 20 - Error corrections; investment LO206 Required: 1....Ch. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Inventory errors LO206 Indicate with the...Ch. 20 - Classifying accounting changes and errors LO201...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - P 20-2 Change in principle; change in method of...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - Change in inventory methods LO202 The Rockwell...Ch. 20 - Change in inventory methods LO202 Fantasy...Ch. 20 - Change in principle; change in depreciation...Ch. 20 - Depletion; change in estimate LO204 In 2018, the...Ch. 20 - Accounting changes; six situations LO201, LO203,...Ch. 20 - Prob. 20.9PCh. 20 - Inventory errors LO206 You have been hired as the...Ch. 20 - Error correction; change in depreciation method ...Ch. 20 - Accounting changes and error correction; seven...Ch. 20 - Prob. 20.13PCh. 20 - Prob. 20.14PCh. 20 - Prob. 20.15PCh. 20 - Prob. 20.16PCh. 20 - Prob. 20.17PCh. 20 - Integrating Case 201 Change to dollar-value LIFO ...Ch. 20 - Prob. 20.2BYPCh. 20 - Prob. 20.3BYPCh. 20 - Analysis Case 204 Change in inventory methods;...Ch. 20 - Prob. 20.5BYPCh. 20 - Prob. 20.6BYPCh. 20 - Analysis Case 208 Various changes LO201 through...Ch. 20 - Analysis Case 209 Various changes LO201 through...Ch. 20 - Prob. 20.10BYPCh. 20 - Prob. 20.11BYPCh. 20 - Prob. 20.12BYPCh. 20 - Prob. 1CCTC
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- Question 44 of 50 View Policies Current Attempt in Progress Bramble Corp. has the following data related to an item of inventory: Inventory, March 1 440 units @ $1.80 Purchase, March 7 1390 units @$1.90 Purchase, March 16 340 units @ $1.95 Inventory, March 31 500 units The value assigned to cost of goods sold if Bramble uses FIFO is O $3129. $906. O $3190. O $965. Save for Laterarrow_forwardΒΔ Moving to Question 7 Bahrain Company made the following merchandise purchases and sales during the April, 2021: April 1 The beginning inventory balance 400 units at $30 each. Sold 250 units at $40 each. April 4 April 14 Purchased 300 units at $ 32 each. Sold 300 units at $ 50 each. April 28 Answer the following questions assuming that the company uses the First IN First Out (FIFO) method. Note: Write only the final amount - Do not show your calculation 1) What is Cost of goods sold on April 4? 2) What is the inventory balance on April 4? 3) What is the total cost of merchandise purchased on April 14? 4) What is the inventory balance on April 14? 5) What is the Cost of goods sold on April 28? 6) What is the inventory balance on April 28?arrow_forwardExercise 6-13 Estimating ending inventory-retail method LO6 During 2023, Harmony Co. sold $522,000 of merchandise at marked retail prices. At the end of 2023, the following information was available from its records: Beginning inventory Net purchases At Cost At Retail $129,600 $258,800 233,240 395,600 Use the retail method to estimate Harmony's 2023 ending inventory at cost. (Round your intermediate and final answers to 2 decimal places.) Ending inventory پاسےarrow_forward
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