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...

See similar textbooks

Similar questions

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2013, are provided with all new textbooks. This material also is available at www.airfranceklm-finance.com . Required: What method does the company use to value its inventory? What other alternatives are available under IFRS? Under U.S. GAAP?
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 $9,540 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses 292,000 Pretax income Ending inventory
AnsgarPharm is an American drug wholesale company. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following information was included in a recent annual report: Inventories are comprised of the following ($ in millions): September 30, 2019 September 30, 2018 $ 13,428 (1,530) $ 11,898 $ 26,856 (1,702) $ 25,154 Inventories (under FIFO) Less: LIFO reserve Inventories (under LIFO) The company's income statements reported cost $149,098 million for the year ended September 30, 2019. Required: 1. Prepare the September 30, 2019, adjusting entry to record the cost of goods sold adjustment. 2. If AnsgarPharm had used FIFO to report its inventories, what would cost of goods sold have been for the year ended September 30, 2019? Complete this question by entering your answers i Required 1 Required 2 Prepare the September 30, 2019, adjusting entry to reco sold adjustment. Note: If no entry is required for a transaction/event, sele…
Peete Company identifies the following items for possible inclusion in the physical inventory.Indicate whether each item should be included or excluded from the inventory taking. (a) 900 units of inventory shipped on consignment by Peete to another company. Select between included or excluded from the inventory taking IncludedExcluded (b) 3,000 units of inventory in transit from a supplier shipped FOB destination. Select between included or excluded from the inventory taking ExcludedIncluded (c) 1,200 units of inventory sold but being held for customer pickup. Select between included or excluded from the inventory taking IncludedExcluded (d) 500 units of inventory held on consignment from another company.
What is the correct amount of accounts payable? Delish Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from accounting records on December 31, 2020 are as fallows: Inventory on December 31 based on physical count Accounts payable Sales 1 250 000 1 000 000 9 000 000 A. Parts held on consignment from another entity to Delish, the consignee, amounting to P165 000, were included in the physical count on December 31, 2020,and In accounts payable on December 31, 2020. B. P20 000 of parts which were purchased and paid for in December 2020, were sold in the last week of 2020 and appropriately recorded as sales of P28 000. The parts were included in the physical count on December 31, 2020 because the parts were on the loading dock waiting to be picked up by the customer, C. Parts in transit an December 31, 2020, shipped FOB shipping point on December 28, 2020, amounted to P34 000. The customers received the parts on lanuary 6, 2021. Sales of P40 00 to…
Use the information provided in the exhibits to calculate the inventory amounts as they should be reported in the financial statements prepared under U.S. GAAP and IFRS. Enter the appropriate amounts in the associated cells. Enter all amounts as positive values. Round all amounts to the nearest whole number. The following data pertain to Company A’s inventory that was purchased on January 5, Year 1, for $40,000: March 31, Year 1 June 30, Year 1 December 31, Year 1 Estimated selling price $42,000 $44,000 $41,000 Cost of disposal 2,000 2,000 2,500 Normal profit margin 1,200 1,400 1,100 Cost of completion 1,000 1,000 1,000 Current replacement cost 38,000 42,000 36,000 Note: Entire inventory was sold on May 1, Year 2. Company Seeks to Go Global Company A is a publicly traded company that reports interim financial statements on a quarterly basis. Until recently, that is all that Company A has…
The Ogale Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. 2. 3. 4. 5. 6. 7. An invoice for $8,100, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that the materials were received on December 28, 2020. Materials costing $7,300 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns were entered into Ogale's general ledger on December 28, even though the returned items did not arrive at the vendor's office until January 6, 2021. Materials costing $28,000, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a railroad car on the company's siding on that date and…
, Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff's Inventory and purchases are as follows: Book int erences Inventory, January 1, 20x71 Purchases during 2007 Inventory, December 31, 20x7 €224,000 849,000 188,000 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20x6 1-1.29015 January 1, 20x7 1-1.320301 Average during 20x7 1-1.39655 Fourth quarter of 2007 1-1.45000 December 31, 20x7 1-1.47280
A U.S. pulp brokerage firm which prepares its financial statements according to U.S. GAAP and uses a periodic inventory system had the following transactions during the year: Tons Activity Beginning inventory Purchase Sale Purchase November Sale The cost of sales (in '000s) in FIFO, LIFO and Weighted average: Date Activity (000s) 1 5 February May August 2 3 4 $ per Ton 600 650 700 680 750
Please do not give solution in image format ? And explain proper steps by Step.