Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 6, Problem 2AA
To determine
(1)
Absorption costing is a process that the company uses to allocate all types of costs on all products, and then calculates the final price of the products.
Variable costing considers only the variable costs and it is not used for external purpose. However, the company uses this method for their own internal management.
To compare: Income under variable costing and absorption costing for Company A.
To determine
(2)
Absorption costing is a process that the company uses to allocate all types of costs on all products, and then calculates the final price of the products.
Variable costing considers only the variable costs and it is not used for external purpose. However, the company uses this method for their own internal management.
To compare: Income under variable costing and absorption costing for Company G.
To determine
(3)
Just-in-time Inventory System: It means increasing the efficiency of the inventory system by aligning the raw material required from suppliers directly to the material required in the production. This reduces the inventory costs.
To compare: Income under absorption and variable costing if ‘Just-in-time’ (JIT) inventory system is used.
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Please refer to the picture below for the information. Please show the complete solution and kinldy include label. Thank you so much.
Question 1: How much is the amount of "Cost of Goods Sold" to be reported in the 2015 Statement of comprehensive income assuming the company’s policy is to charge loss on inventory write-down to COST OF GOODS SOLD and charge loss on inventory write-down to OTHER EXPENSE, respectively.
Question 2: How much is the amount of "Cost of Goods Sold" to be reported in the 2016 Statement of comprehensive income?
Telamark Company uses the moving weighted average method for inventory costing.
Required:
The following incomplete inventory sheet regarding Product W506 is available for the month of March 2020. Complete the inventory
sheet. (Use the value of the ending inventory as your base number and adjust the COGS S amount to the required amount to
make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value
should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.)
Date Units
Mar 1
12
3
4
7
17
28
Totals
Purchases/Transportation-In/
(PurchaseReturns/Discounts)
32
27 S
Cost/Unit
Brought Forward
96.00
97.00
Goods Available for Sale
Total $
Cost of Goods Sold (Returns to
Inventory)
Units
40
(20)
47
35
Cost/Unit
Goods Sold
Total S
Units
52 $
Balance in Inventory
Avg
Cost/Unit
94.00 S
Ending Inventory
Total $
4,888 00
In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases using LCNRV.
Cases
00100
00200
00300
00400
00500
Cost
$15.90
$16.10
$15.90
$15.90
$15.90
Sales value
14.80
19.20
15.20
10.40
17.80
Estimated cost to complete
1.50
1.90
1.65
.80
1.00
Estimated cost to sell
.50
.70
.55
.40
.60
Chapter 6 Solutions
Managerial Accounting
Ch. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQ
Ch. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14QSCh. 6 - Prob. 15QSCh. 6 - Prob. 16QSCh. 6 - Prob. 17QSCh. 6 - Prob. 18QSCh. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1AACh. 6 - Prob. 2AACh. 6 - Prob. 3AACh. 6 - Prob. 1BTNCh. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTNCh. 6 - Prob. 6BTN
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- If the company had used the FIFO inventory costing method, cost of goods sold under FIFO would have been $ 10,200.00. Management wants a report that shows how changing from FIFO to another method would change net income. Prepare a table showing (1) the amount by which cost of goods sold under LIFO and AVCO is different from the FIFO cost of goods sold and ( 2) the effect on net income when LIFO and AVCO are used instead of FIFO. When costs are rising, what is the effect of the FIFO inventory valuation approach on cost of goods sold, gross profit and net income? Why?arrow_forwardRoss Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; selling price, $30; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?arrow_forwardTelamark Company uses the moving weighted average method for Inventory costing. Required: The following Incomplete inventory sheet regarding Product W506 is avallable for the month of March 2020. Complete the Inventory sheet. (Use the value of the ending Inventory as your bese number and adjust the COGS $ amount to the requlred amount to make the Total Goods Avallable for Sale to the total of the Velue of the ending Inventory and the COGS total. Negative value should be Indicated with minus sign. Round your Intermediate and final answers to 2 decimal places.) Purchases/Transportation-In/ (PurchaseReturns/Discounts) Cost of Goods Sold/(Returns to Inventory) Balance in Inventory Units Avg Cost/Unit Date Units Cost/Unit Total $ Units Cost/Unit Total $ Total $ Mar. 1 Brought Forward 60 94.00 5,640.00 2 35 98.00 3 22 4 (2) 7 65 17 40 97.00 28 43 Totals Goods Available for Sale Goods Sold Ending Inventoryarrow_forward
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