12 15 18 22 25 30 Totals (a1) Purchase Sale Purchase Sale Purchase Sale 410 Ending inventory 300 540 2,150 5.00 5.10 4.40 2,050 1,530 2,376 $9,636 230 410 230 1,470 7.80 7.80 7.40 1,794 3,198 1,702 $11,014 Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.

12 15 18 22 25 30 Totals (a1) Purchase Sale Purchase Sale Purchase Sale 410 Ending inventory 300 540 2,150 5.00 5.10 4.40 2,050 1,530 2,376 $9,636 230 410 230 1,470 7.80 7.80 7.40 1,794 3,198 1,702 $11,014 Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.

Name: Vaibh 121518222530Totals(a1)PurchaseSalePurchaseSalePurchaseSale410End
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Description: Vaibh 121518222530Totals(a1)PurchaseSalePurchaseSalePurchaseSale410Ending inventory $3005402,1505.005.104.402,0501,5302,376$9,6362304102301,4707.807.807.401,7943,1981,702$11,014Assuming that the periodic inventory method is used, calculate the invent

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 5E: Inventory Write-Down The following information is taken from Aden Companys records: Required: 1....

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(Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
Inventory Write-Down The following information is taken from Aden Companys records: Required: 1. What is the correct inventory value if the company applies the LCNRV rule to each of the following? a. individual items b. groups of items c. the inventory as a whole 2. Next Level Are there any conditions under which a company may ignore the decline in the value of inventory below its cost?
Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
Inventory Write-Down The following information for Tuell Company is available: Required: 1. Assume Tuell uses the LIFO cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? 2. Assume Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? 3. Assume that Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations if Tuell uses IFRS?
( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.
(Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or net realizable value for each of the following alternatives: a. allowance method, periodic inventory system b. direct method, periodic inventory system 2. Next Level Refer to your answer for P8-2. How does the use of the periodic inventory system affect the write-down of inventory to the lower of cost or net realizable value?
31. Apply the Retail Inventory Method to calculate the cot of ending invery Cost Beginning inventory Net purchanes Sales Ratail $20.224 $31600 59.508 97000 .00
The following inventory details of ABC company Date Description Units Cost 1/1/2020 Opening inventory $10 5/1/2020 Purchases 8 $15 10/1/2020 Sales 7 15/1/2020 Purchases 10 $20 20/1/2020 Sales 8. By using Period Inventory System, calculate: Cost of Goods Sold and Cost of Ending Inventory under a) FIFO b) LIFO c) AC
Perpetual inventory using weighted averageBeginning inventory, purchases, and sales for WCS12 are as follow s: Oct 1132220 Inventory SalePurchaseSale 320 units at $10180 units360 units at $12300 units Assuming a perpetual inventory system and using the weighted averagemethod, determine (a) the weighted average unit cost after the October22 purchase, (b) the cost of goods sold on October 29, and (c) theinventory on October 31.
Applying the lower of cost or market to each item of inventory, what should the total inventory value be for the following items? Item InventoryQuantity Cost perUnit Market Valueper Unit TotalCost TotalMarket A 300 $15.00 $14.50 $4,500 $4,350 B 200 14.00 15.00 2,800 3,000 C 100 17.00 17.50 1,700 1,750 a. $8,850 b. $9,100 c. $9,250 d. $9,000
A company uses the first-in-first-out (FIFO) method of valuing inventory and makes the following purchases and issues of Material M. Date1 July – purchase8 July – purchase12 July – purchase22 July – issue 950 30 July – issue 400Units Value £ 400 940 750 1,875 700 1,680 The inventory valuation of Material M on July 31 is:A. £1,190B. £1,200C. £1,215D. £1,225 what's the answer
Jimin Inc. How much shall be considered as Inventory in the balance sheet if valuation is made on an item-by-item basis?