INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
3rd Edition
ISBN: 9780136946601
Author: GORDON
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 2SSC
Surfing the Standards Case 2: Inventory Disclosures
Abtos Company is a U.S. manufacturer that is publicly traded. Abtos reports $12 million of inventory on its
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1. Assume that Island Solutions applies LCNRV at the individual product level to determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
2. Assume Island Solutions applies LCNRV at the major group level and, for this purpose, places TA3 and TB3 Hubs in one major group, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
A company uses ABC analysis to help manage its inventory. Its current stock of inventory reflects the following iterns, itern value and quantity.
Click the icon to view company's inventory database.
Find the percentage input to the total dollar value for each item (enter your responses rounded to one decimal place)
% Dollar Value
Item Part
142-AZ
More Info
W
Item Part
142-AZ
4392-GF
86935-ES
173-DC
999-BA
7846-NM
2765-OP
103-VX
2648-YT
Item Cost ($)
564
46
16.00
647
193
20
367
11.50
16.50
Quantity
In-Stock
330
1,291
3,521
1,856
509
993
809
4,818
5,134
P
<-X
When following U.S. GAAP, the lower-of-cost-or-market rule for inventory requires a firm to report ________.
Group of answer choices
the inventory at cost if the market value of inventory is higher than its cost basis
the inventory at the higher amount of cost or market on the balance sheet
the difference between the cost basis and the market-based measure of inventory as a gain on the income statement
the inventory at cost if the market value of inventory is lower than its cost basis
Chapter 3 Solutions
INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Does U.S. GAAP require that companies disclose...Ch. 3 - Does IFRS require that companies disclose...Ch. 3 - Prob. 3.5QCh. 3 - Does IFRS require that companies disclose their...Ch. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - What is the Basis for Conclusions and where can...Ch. 3 - Prob. 3.13QCh. 3 - Prob. 3.14QCh. 3 - Prob. 3.1BECh. 3 - Judgment in Accounting for Plant and Equipment....Ch. 3 - Match Each Cognitive Bias Below with its...Ch. 3 - Prob. 3.4BECh. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Codification Research. Referencing Appendix A,...Ch. 3 - Prob. 3.9BECh. 3 - Prob. 3.10BECh. 3 - Exercises E3-1. Accounting Policy Disclosures. To...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. To what entity types...Ch. 3 - Authoritative Literature. How does FASB define...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 1JCCh. 3 - Prob. 2JCCh. 3 - Prob. 1SSCCh. 3 - Surfing the Standards Case 2: Inventory...Ch. 3 - Prob. 3SSCCh. 3 - Basis for Conclusions Case 1: Judgment and...Ch. 3 - Basis for Conclusions Case 2: Income Statement or...
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- Match the accounting terminology to the definitions. A(Click the icon to view the definitions.) More Info - X Term Definition 1. Cost of Goods Sold 2. Perpetual inventory system An inventory system that requires businesses to obtain a physical count of inventory to а. 3. Vendor determine quantities on hand. 4. Periodic inventory system Expenses, other than Cost of Goods Sold, that are incurred in the entity's major b. 5. Operating expenses ongoing operations. 6. Gross profit Excess of Net Sales Revenue over Cost of Goods Sold C. d. The cost of merchandise inventory that the business has sold to customers. The individual or business from whom a company purchases goods. е. f. An inventory system that keeps a running computerized record of merchandise inventory Print Donearrow_forwardIdentify any differences between U.S. GAAP and International Financial Reporting Standards in the methods allowed to value inventory.arrow_forward1. U.S. public companies using LIFO also report the amount that inventory wouldincrease (oroccasionally decrease) if the company had instead used FIFO. See file please.arrow_forward
- When comparing a US company that uses the last in, fi rst out (LIFO) method of inventory with companies that prepare their fi nancial statements under international fi nancialreporting standards (IFRS), analysts should be aware that according to IFRS, the LIFOmethod of inventory:A . is never acceptable.B . is always acceptable.C . is acceptable when applied to fi nished goods inventory onlyarrow_forwardQUESTION 1 1.1 REQUIRED Complete the table for the transactions provided for each of the following methods of inventory valuation: FIFO Weighted Average Cost. (Round off the weighted average cost per unit to the nearest cent and all other amounts to the nearest Rand.) Purchased Date Quantity Price Value Issued/Returned Stock on hand Quantity Price Quantity Price Value Value INFORMATION The following information for March 2020 was extracted from the records of Monalisa Limited, a manufacturing company, for an inventory item used in one of its projects. Date Transaction details Opening inventory 01 2 000 units @ R17 each Purchased 02 48 000 units @ R18 each 15 10 000 units at R19.05 each 20 000 units @ R20 each Returned to supplier 10 000 damaged units (purchased 02 March) Transferred to the production department 30 000 units 22 03 04 17 15 000 units 25 20 000 units PROGRAMME HANDBOOK: JULY 2020 INTAKE MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT 1.2 REQUIRED Use the information…arrow_forwardDisplay Financial Statement What is the G/L account number for Inventory-Suspense (Heaven)? Please use the following: company code = US00, Ledger 0L = (Leading Ledger), Statement Version = G000, Statement Type = Normal (Actual – Actual), End Period = 8/ 2020, Comparison End Period = 1 /2016, currency = US00. Select one: A. 200500 B. 200532 C. 200200 D. 202422arrow_forward
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