Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 8, Problem 11C
Analyzing Moet Hennessy Louis Vuitton’s (LVMH) Inventory Disclosures
Obtain Moet Hennessy Louis Vuitton’s 2017 annual report using the “Investor Relations” portion of its website (do a web search for Moet Hennessy – Louis Vuitton investor relations).
Required:
- 1. Describe the inventory of LVMH.
- 2. How does LVMH value its inventory other than wines? Why doesn’t LVMH use LIFO?
- 3. How does LVMH value its wine inventory? What is the justification for this valuation?
- 4. Did LVMH record any inventory write-downs during the year? If so, what was the dollar amount and can any conclusions be drawn from the pattern or write-downs.
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Students have asked these similar questions
Comvita follows the period inventory accounting. During the reporting period ended 31st December 2018, Comvita have sold 250, 000 units of Manuka honey with a sales price of $100.
answer these two following question seperately:
question no 1
Analyse how inventory valuation methods impact on financial statement analysis of Comvita. The Comvita management has asked you to recommend from three inventory valuation methodse. FIFO, LIFO and weighted average for their cost of goods sold. The management have provided you with the following data (LO2)
Inventory at 1 Jan 2018 is 90,000 units @ $ 50
Inventory at 30 March 2018 is 110,000 units @ 52
Inventory at 1st July 2018 is 55,000 units @ 60
Inventory at 1st October is 65,000 @ 70
Note: Your recommendation should be supported with the evaluation of cost of goods sold calculation for each inventory methods .
(LO2: Apply accounting tools and techniques to analyse and resolve complex situations within an organisation )
question no 2…
(Accounting Change) Gordon Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, it decides to switch to the average-cost method. You are provided with the following information.
Check the below image for information.
Instructions(a) What is the beginning retained earnings balance at January 1, 2014, if Gordon prepares comparative financial statements starting in 2014?(b) What is the beginning retained earnings balance at January 1, 2017, if Gordon prepares comparative financial statements starting in 2017?(c) What is the beginning retained earnings balance at January 1, 2018, if Gordon prepares single-period financial statements for 2018?(d) What is the net income reported by Gordon in the 2017 income statement if it prepares comparative financial statements starting with 2015?
You are examining the financial statements of France Company for the year ended
December 31, 2022. It uses the physical inventory system of accounting for inventory.
During your examination, you discovered that the 2023 sales of P 120,000 were
recorded in 2022; goods were excluded in the 2022 ending inventory at a cost of
70,000.
Based on the foregoing, answer the following questions:
Question 1: Which of the following accounts is(are) overstated by P 120,000 at the
end of year 2022 as a result of the error?
Select 1
sales Onlv
a. Sales and Accounts Receivable
b. Inventory, December 31, 2022 only
c. Retained Earnings only
Question 2: Which of the following accounts is (are) understated by p 70,000 at the
end of year 2022 as a result of the error?
Select 1
a. retained earnings
b. inventory, december 31,2022
c. sales and accounts receivable
d. sales and retained earnings
Chapter 8 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 8 - Under what circumstances will a company value...Ch. 8 - What is the conceptual justification for reducing...Ch. 8 - Define the terms cost, net realizable value, and...Ch. 8 - For companies that use either LIFO or the retail...Ch. 8 - What three implementation approaches may a company...Ch. 8 - Describe the two approaches to recording the...Ch. 8 - Prob. 7GICh. 8 - In applying the inventory valuation rules to...Ch. 8 - Prob. 9GICh. 8 - What are the exceptions to historical cost...
Ch. 8 - Prob. 11GICh. 8 - Prob. 12GICh. 8 - What is the basic assumption underlying the gross...Ch. 8 - Prob. 14GICh. 8 - Prob. 15GICh. 8 - Explain the meaning of the following terms:...Ch. 8 - Prob. 17GICh. 8 - Prob. 18GICh. 8 - The retail inventory method indicated an inventory...Ch. 8 - Prob. 20GICh. 8 - Indicate the effect of each of the following...Ch. 8 - Sienna Company uses the FIFO cost flow assumption....Ch. 8 - Moore Company uses the LIFO cost flow assumption...Ch. 8 - A company uses the LIFO cost flow assumption. The...Ch. 8 - Prob. 4MCCh. 8 - Hestor Companys records indicate the following...Ch. 8 - Under the retail inventory method, freight-in...Ch. 8 - The retail inventory method would include which of...Ch. 8 - At December 31, 2019, the following information...Ch. 8 - Estimates of price-level changes for specific...Ch. 8 - A company forgets to record a purchase on credit...Ch. 8 - Brown Company has the following information...Ch. 8 - Black Corporation uses the LIFO cost flow...Ch. 8 - Blue Corporation uses the FIFO cost flow...Ch. 8 - Paul Corporation uses FIFO and reports the...Ch. 8 - Using the information provided in RE8-4, prepare...Ch. 8 - Kays Beauty Supply uses the gross profit method to...Ch. 8 - Uncle Butchs Hunting Supply Shop reports the...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Johnson Corporation had beginning inventory of...Ch. 8 - Borys Companys periodic inventory at December 31,...Ch. 8 - Refer to the information provided in RE8-4. If...Ch. 8 - Refer to the information provided in RE8-4. If...Ch. 8 - Inventory Write-Down Stiles Corporation uses the...Ch. 8 - Inventory Write-Down Stiles Corporation uses the...Ch. 8 - Inventory Write-Down Byron Company has five...Ch. 8 - Inventory Write-Down The following information for...Ch. 8 - Inventory Write-Down The following information is...Ch. 8 - Inventory Write-Down The inventories of Berry...Ch. 8 - Prob. 7ECh. 8 - Gross Profit Method: Estimation of Flood Loss On...Ch. 8 - Prob. 9ECh. 8 - Gross Profit Method: Estimation of Theft Loss You...Ch. 8 - Retail Inventory Method Harmes Company is a...Ch. 8 - Retail Inventory Method The following data were...Ch. 8 - Retail Inventory Method The following information...Ch. 8 - Dollar-Value LIFO Retail Johns Company adopts the...Ch. 8 - Dollar-Value LIFO Retail Wyatt Company adopts the...Ch. 8 - Dollar-Value LIFO Retail On December 31, 2018,...Ch. 8 - Errors A company that uses the periodic inventory...Ch. 8 - Errors During the course of your examination of...Ch. 8 - (Appendix 8.1) Inventory Write-Down The...Ch. 8 - Inventory Write-Down Palmquist Company has five...Ch. 8 - Inventory Write-Down The following are the...Ch. 8 - Inventory Write-Down The inventory records of...Ch. 8 - Gross Profit Method: Estimation of Fire Loss On...Ch. 8 - Gross Profit Method: Estimation of Flood Loss On...Ch. 8 - Retail Inventory Method Turner Corporation uses...Ch. 8 - Retail Inventory Method EKC Company uses the...Ch. 8 - Retail Inventory Method Red Department Store uses...Ch. 8 - Retail Inventory Method Weber Corporation uses the...Ch. 8 - Dollar-Value LIFO Retail The following information...Ch. 8 - Dollar-Value LIFO Retail Intella Inc. adopted the...Ch. 8 - Prob. 12PCh. 8 - Errors As controller of Lerner Company, which uses...Ch. 8 - Comprehensive: Inventory Adjustments Layne...Ch. 8 - (Appendix 8.1) Inventory Write-Down The following...Ch. 8 - (Appendix 8.1) Inventory Write-Down Frost Companys...Ch. 8 - Prob. 1CCh. 8 - Sandberg Paint Company, your client, manufactures...Ch. 8 - Prob. 3CCh. 8 - Inventory Valuation Issues Hanlon Company...Ch. 8 - Gross Profit Shelly Corporation is an importer and...Ch. 8 - Prob. 6CCh. 8 - Prob. 7CCh. 8 - Various Inventory Issues Hudson Company, which is...Ch. 8 - Analyzing Starbucks Inventory Disclosures Obtain...Ch. 8 - Analyzing Moet Hennessy Louis Vuittons (LVMH)...
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