FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS
9th Edition
ISBN: 9781264624829
Author: Wild
Publisher: MCG
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Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory
on hand was $17,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows:
Date
12/31/2021
12/31/2022
Ending Inventory
at Retail
$35,000
$49,000
Retail Price
Index
1.40
1.75
Cost-to-Retail.
Percentage
87 %
90%
Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021?
2. Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method.
Complete this question by entering your answers in the tabs below.
Q1. You are provided with the following information for Diana Inc. for the month ended December 31, 2020.
Diana uses the periodic method for inventory.
Date
Description Quantity Unit cost or Selling price ($)
December 1 Inventory
40
40
December 5 Purchase
135
43
December 7 Sale
110
70
December 8 Sale Return
15
70
December 10 Purchase
55
46
December 15 Sale
30
72
Requirements:
Calculate (i) ending inventory, (ii) cost of goods sold (through ending inventory), and (iii) gross profit under
each of the following methods-
a) FIFO
b) LIFO
c) Average Cost
Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days’ sales in inventory ratio, for years 2022 and 2023.
Chapter 5 Solutions
FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS
Ch. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Perpetual: Inventory costing with FIFO P1 A...Ch. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - A Periodic: Inventory costing with weighted...
Ch. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Perpetual: Inventory costing with weighted average...Ch. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 24QSCh. 5 - Prob. 25QSCh. 5 - Prob. 26QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Exercise 5-3 Perpetual: Inventory costing methods...Ch. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prob. 21ECh. 5 - Prob. 1PSACh. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Problem 5-4AA Periodic: Alternative cost flows...Ch. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Prob. 7PSACh. 5 - Prob. 8PSACh. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Prob. 5PSBCh. 5 - Prob. 6PSBCh. 5 - Prob. 7PSBCh. 5 - Problem 5-8BA Periodic: Income comparisons and...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Prob. 5SPCh. 5 - Prob. 1.1AACh. 5 - Prob. 1.2AACh. 5 - Prob. 1.3AACh. 5 - Prob. 1.4AACh. 5 - Prob. 2.1AACh. 5 - Prob. 2.2AACh. 5 - Prob. 2.3AACh. 5 - Prob. 3.1AACh. 5 - Prob. 3.2AACh. 5 - Prob. 3.3AACh. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - What factors contribute to (or cause) inventory...Ch. 5 - Prob. 8DQCh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 5BTN
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- Sheffield Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018–2020. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2018 $16,010 $19,020 $12,120 2019 18,070 21,180 13,950 2020 20,200 25,010 17,110 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. (c) Assume Sheffield Company used the LIFO method instead of the average cost method during the years 2018–2020. In 2021, Sheffield changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.arrow_forwardDetermine ending inventory using dollar-value LIFO. Assume that the December 2, 2025, purchase cost is the current cost of the inventory.arrow_forwardWhat amount of inventory should be reported in the December 31, 2019 Statement of Financial Position?. Please show me the solution in a good accounting from.arrow_forward
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