ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physicalinventory at year-end. A physical count was taken on December 31, 2021, and the inventory on-hand at that time totaled$50,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2021 Cost of Goods Sold. Hint:This was the first year of operations, so beginning inventory balance is zero. Additionally, AB

ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking…

Answered: ABC uses a periodic inventory system,…

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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H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending Inventory Information about the five major Items stocked for regular sale follows: Item A B C A B moo D C E E Required: Compute the valuation that should be used for the current year ending Inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Item Quantity Total Cost Realizable Value 68 98 28 88 368 Total ENDING INVENTORY, CURRENT YEAR Quantity on Hand $ 68 98 28 88 368 0 Unit Cost When Net Realizable Value (Market) Acquired (FIFO) at Year-End $ 19 $ 22 47 37 55 32 17 $ 59 37 12 Lower of Cost or NRV 0 S 0
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On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $101,300. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-End Ending Inventory at Year-End Costs Cost Index 2024 $ 130,095 1.05 2025 148,720 1.10 2026 159,060 1.20 In determining the inventory balance for the company to report in its 12/31/2025 balance sheet
On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $660,000. The 2021 and 2022 ending inventory valued at year-end costs were $690,000 and $760,000, respectively. The appropriate cost indexes are 1.04 for 2021 and 1.08 for 2022. Required:Complete the below table to calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO method. (Round "Year-end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.)
Prepare the journal entry to record the LIFO adjustment. See the information below: The balances in Inventory – Finished Goods for the first and second year that WTG was in business were $275,000 and $350,000, respectively. The relevant indices for the 4 years are as follows: Year 1: 100 Year 2: 101 Year 3: 102 Year 4 (Current Year): 103 The computation of LIFO is included in the “Inventory” spreadsheet attached.
Next Hope reported the following income statement for the year ended December 31, 2026: View the income statement. Requirements 1. 2. Compute Next Hope's inventory turnover rate for the year. (Round to two decimal places.) Compute Next Hope's days' sales in inventory for the year. (Round to two decimal places.) ... Requirement 1. Compute Next Hope's inventory turnover rate for the year. (Round to two decimal places.) Select the labels and enter the amounts to compute the inventory turnover rate. (Round your answer to two decimal places, X.XX.) Income statement = Inventory turnover = times Next Hope Income Statement Year Ended December 31, 2026 Requirement 2. Compute Next Hope's days' sales in inventory for the year. (Round to two decimal places.) ÷ ÷ Select the labels and enter the amounts to compute the days' sales in inventory for the year. (Enter all amounts to two decimal places, X.XX.) Days' sales in inventory days Net Sales Revenue $ 148,000 Cost of Goods Sold: = Beginning…
On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year EndedDecember 31 Inventory atYear-endCosts Cost Index(Relative toBase Year) 2021 $ 259,200 1.08 2022 296,800 1.12 2023 299,000 1.15 Required:Compute inventory amounts at the end of each year using the dollar-value LIFO method. 12/31/2021 12/31/2022 12/31/2023
A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $120,000 Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 198,000 261,800 243,600 240,800 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year End Cost Inventory Layers at Base Year Cost Inventory Layers Converted to Cost Inventory Layers Converted to Cost Base Base 2024 Base 2024 2025 Base 1.10 1.19 1.16 1.12 2024 2025 2026 Base 2024 2025 2026 2027 Inventory Layers at Base Year Cost Inventory DVL…
A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $165,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Ending Inventory at Year-End Costs Cost Index (Relative to Base Year) 2024 $ 243,800 1.06 2025 324,500 1.18 2026 304,750 1.15 2027 299,700 1.11 Required: Calculate inventory amounts at the end of each year. (nearest whole dollars)
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Gato Inc. had the following inventory situations to consider at January 31, its year-end.Identify which of the preceding items should be included in inventory. (a) Goods held on consignment for Steele Corp. since December 12. Select an option (b) Goods shipped on consignment to Logan Holdings Inc. on January 5. Select an option (c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit. Select an option (d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. Select an option (e) Goods purchased FOB destination from a supplier on January 25 that are still in transit. Select an option…
Gato Inc. had the following inventory situations to consider at January 31, its year-end.(a) Goods held on consignment for Steele Corp. since December 12.(b) Goods shipped on consignment to Logan Holdings Inc. on January 5.(c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit.(d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit.(e) Goods purchased FOB destination from a supplier on January 25 that are still in transit.(f) Goods purchased FOB shipping point from a supplier on January 25 that are still intransit.(g) Office supplies on hand at January 31. InstructionsIdentify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded

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