A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31, 2021, ending inventory is $10,500 Burlington Garden SuppliesIncome Statement (partial)Year Ended January 31, 2021Requirement1. Prepare the company's 2021 income statement through gross profit to showhow the company would apply the lower-of-cost-or-market rule to itsinventories.PrintDone Data TableInventoryCost of Goods SoldSales RevenueBeg bal11,000End bal16,000Bal72,000|Bal117,000PrintDone

Income statement represents the net income or loss that includes the revenues and expenses of the…

Answered: A year ago, the net realizable value…

A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31,

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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In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2023, B & B’s inventories were $32.2 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.9 million at December 31, 2023, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Bramble Corp. has $24000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $18000 and cost of goods sold was $53000, how much would Bramble report for cost of goods manufactured? $18000 $47000 $77000 $59000
3. How much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021? On December 31, 2021, BLACK MAMBA Company appropriately changed its inventory valuation method to average cost method from FIFO for financial statement and income tax purposes. The change will result in a $180,000 increase in the beginning inventory at January 1, 2021. Assume an income tax rate of 30%. Your answer
On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $750,000. The 2024 and 2025 ending inventory valued at year-end costs were $793,000 and $882,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.05 for 2025. Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.
The following information was available for Bramble Company at December 31, 2020: beginning inventory $4000; ending inventory $96000; cost of goods sold $2500000; and sales $1280000. Bramble's days in inventory in 2020 was O 0.6 days. O 14.3 days. O 7.3 days. O 14.0 days. Save for Later Attempts: 0 of 1 used Submit Answer
A company adopted dollar - value LIFO on January 1, 2024, when the inventory value was $367,000 and the cost index was 1.35. On December 31, 2024, the inventory was valued at year-end cost of $402,000 and the cost index was 1.40. The company would report a LIFO inventory of: Note: Round your final answer to the nearest whole dollar amount.
On 31 December 2020, a company has semi-finished inventory with a cost to date of OMR 63,500. It is expected that further costs of OMR 13,800 will be incurred in order to complete the inventory. It will then be sold for OMR 112,000. Selling costs will be OMR 6,000 and an agent commission to sell inventory is OMR 3,200. The net realizable value and cost of this inventory at 31 December 2020 are: None of them OMR 92,200 and OMR 63,500 OMR 95,000 and OMR 63,500 OMR 89,000 and OMR 63,500
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3. How much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021?