15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different product lines) that it still has in inventory at December 31, the end of its fiscal year. The following table provides information about each product: Product Cost Replacement Cost Selling Price $130 $160 $100 101 202 303 $140 $135 $90 $160 $140 $70 Beech Corporation expects to incur selling costs equal to 5 percent of the selling price on each of the products. Required: Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet. 23 4

15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different product lines) that it still has in inventory at December 31, the end of its fiscal year. The following table provides information about each product: Product Cost Replacement Cost Selling Price $130 $160 $100 101 202 303 $140 $135 $90 $160 $140 $70 Beech Corporation expects to incur selling costs equal to 5 percent of the selling price on each of the products. Required: Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet. 23 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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B7).
Benson Company, which sells electric razors, had $300,000 of cost of goods sold during the month of June. The company projects a 6 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $19,000, and the desired ending inventory balance for July is $20,000. Benson pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $34,000. Required a. Determine the amount of purchases budgeted for July. b. Determine the amount of cash payments budgeted for inventory purchases in July. a. Budgeted purchases b. Cash payments
In 2020, Fresh Express Company sold 2,590 units of its product on September 20 and 3,450 units on December 22, all at a price of $99 per unit. Incurring operating expenses of $11 per unit sold, it began the year with and made successive purchases of the product as follows: January 1 beginning inventory 690 units @ $ 44 per unit Purchases: February 20 1,590 units @ $ 46 per unit May 16 790 units @ $ 50 per unit December 11 3,390 units @ $ 51 per unit Total 6,460 units Required:Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the product, assuming the company uses a periodic inventory costing system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "average cost per unit" to 2 decimal places. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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An executive in a merchandising company receives an annual bonus equal to 5% of net income. Historically, the company has calculated cost of goods sold and ending inventory using LIFO and has maintained 30,000 of units in inventory for the last ten years. The executive is recommending the company reduce the number of units in year-end inventory to 1,000. Over the ten-year period, the cost per unit of inventory has increased from $60 per unit to $110 per unit. Respond to the following in a minimum of 175 words: In what ways would a reduction in inventory help the company? In what ways would the change from LIFO to FIFO help the executive personally? Would you approve the proposal to move from LIFO to FIFO? Why, or why not?
Mk. 219.