(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020.Balance in the Allowance to Reduce Inventory to Market $(a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change inAllowance to Reduce Inventory to Market.The amount of the gain (loss)eTextbook and MediaSave for Later$Attempts: 4 of 5 usedSubmit Answer View PoliciesShow Attempt HistoryCurrent Attempt in ProgressWhispering Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homesand condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year endedMay 31, 2020. Jim Alcide, controller for Whispering, has gathered the following data concerning inventory.At May 31, 2020, the balance in Whispering's Raw Materials Inventory account was $428,400, and Allowance to Reduce Inventoryto Market had a credit balance of $26,750. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in theschedule below.Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear onWhispering's May 31, 2020, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory.Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing.Aluminum sidingCedar shake sidingLouvered glass doorsThermal windowsTotalCost$73,50090,300117,600147,000ReplacementCost$65,62583,370130,200132,300$428,400 $411,495Sales Price$67,20098,700195,720162,540$524,160NetRealizableValue$58,80089,040176,715147,000$471,555NormalProfit$5,3557,77019,42516,170$48,720

The anticipated amount that the business will get when it sells the inventory is known as the…

(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market $ (a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain (loss) eTextbook and Media Save for Later $ Attempts: 4 of 5 used Submit Answer

(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market $ (a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain (loss) eTextbook and Media Save for Later $ Attempts: 4 of 5 used Submit Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me
Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment (S in millions) Inventories $4 6,008 x Total assets %24 Deferred tax liabilkies $ 54,108 x 277 x Equity 0 x b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Cost of goods sold %24 0 x Pretax income %24 0 x Income tax expense $ 0 x Net income %24
1. In 2021, Jules Company realized that its ending inventory was understated by P1,500 in 2019. How should Jules Company handle this? a. An adjustment to reduce inventory by P1,500 needs to be made b. An adjustment to increase cost of goods sold by P1,500 needs to be made. c. An adjustment to increase inventory by P1,500 needs to be made d. No adjustment needs to be made. 2. For interim reporting, a gain on disposal of land occurring in the third quarter is a. Recognized and allocated over the quarters b. Recognized and allocated over four quarters c. Recognized immediately in the third quarter d. Deferred until the annual reporting
Problem 1 of 2 (note additional problem below): Calculate the cost of goods sold dollar value and the value of ending inventory for En Cee Yo0 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIF0); and (c) weighted average (AVG). You must show your work and calculations--answers that are correct but do not show calculations are graded as a zero grade. Place your answers in the shaded cells. Number of Units Unit Cost 110 $ Beginning inventory, March 1 Purchased inventory, March 8 86 140 $ 90 Sold inventory for $110 per unit, March 11 95 If you use the FIFO method, the dollar value of COGS is → and the dollar value of ending inventory is- If you use the LIFO method, the dollar value of COGS is - and the dollar value of ending inventory is- If you use the Weighted Average method, the dollar value of…
Partial income statements for Sherwood Company summarized for a four-year period show the following: 2018 2019 2020 2021 $ 2,300,000 1,472,000 $ 2,700,000 1,701,000 $ 2,800,000 1,820,000 $ 3,300,000 2,112,000 Net Sales Cost of Goods Sold Gross Profit $ 828,000 $ 999,000 $ 980,000 $ 1,188,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $21,200. The inventory balance on December 31, 2020, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts?
Do not give solution in image format