Abtos company is a U.S. Manufacturer that is publicly traded. Abtos reports $12 million of Inventory on its balance sheet. Inventory includes raw materials, work in process and finished goods. Is Abtos required to disclose the amounts for each class of inventory, or can it simply report the total $ 12 million balance on its balance sheet? Provide Codification references to support your answer to this question. please prepare a memorandum to address the above issue.

Abtos company is a U.S. Manufacturer that is publicly traded. Abtos reports $12 million of Inventory on its balance sheet. Inventory includes raw materials, work in process and finished goods. Is Abtos required to disclose the amounts for each class of inventory, or can it simply report the total $ 12 million balance on its balance sheet? Provide Codification references to support your answer to this question. please prepare a memorandum to address the above issue.

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12GI: Consider each of the following independent situations. Should a company report the goods in its...

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Consider each of the following independent situations. Should a company report the goods in its inventory? (a) Goods purchased by the company with shipping terms FOB shipping point that are in transit at the end of the year (b) Goods received by the company on consignment (c) An estimate of the amount of goods sold by the company that it expects the buyer to return (d) Goods required to be purchased by the company under an unconditional purchase obligation
Required information [The following information applies to the questions displayed below.] Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Units 22 Unit Cost $11,540 10,040 Total Cost $ 253,880 421,680 42 Sales (47 units at $24,670 each) Inventory is valued at cost using the LIFO inventory method. Required: 1. Complete the following income statement summary using the LIFO method and the periodic inventory system. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses 292,000 Pretax income Ending inventory
Required information [The following information applies to the questions displayed below.] Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Units 22 42 Unit Cost $11,540 10,040 Total Cost $ 253,880 421,680 Sales (47 units at $24,670 each) Inventory is valued at cost using the LIFO inventory method. 2. The management, for various reasons, is considering buying 22 additional units before December 31 year-end at $9,540 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses 292,000 Pretax income Ending inventory
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Domestic
What is the total costs of the purchases? Based on the given below. Choose only the letter of answer