E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 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 D E A B C D E 62 92 22 82 362 Total Net Item Quantity Total Cost Realizable Value Total Quantity on Hand 62 92 22 82 362 $ ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired (FIFO) $ 13 41 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. 0 53 31 6 Lower of Cost or NRV 0 S Net Realizable Value (Market) at Year-End $ 16 31 49 26 11

E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 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 D E A B C D E 62 92 22 82 362 Total Net Item Quantity Total Cost Realizable Value Total Quantity on Hand 62 92 22 82 362 $ ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired (FIFO) $ 13 41 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. 0 53 31 6 Lower of Cost or NRV 0 S Net Realizable Value (Market) at Year-End $ 16 31 49 26 11

Name: 25E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable
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Description: 25E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4BwthH.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending Inventory Informationabout the five major Items stocked

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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3. Specific identification (assuming the inventory comes from Problem 11-2 (ACP) Furlough Company began operations at the beginning of current year with 10,000 units of merchandise with unit cost of P80. Purchases for the current year follow: Unit cost Units Lot No. 2,000 8,000 6,000 9,500 14,500 100 110 120 100 90 The physical inventory revealed 15,000 units on hand at year-end. Required: Compute inventory cost at year-end and cost of goods sold for the year following each method listed below. 1. FIFO - periodic 2. Weighted average periodic 3. Specific identification (assuming the inventory comes ro Lot 3, 6,000 units, and Lot 4, 9,000 units). 322 12345
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TB MC Qu. 8-111 (Static) A company has the following information available... A company has the following information available that was used to report inventory using the dollar-value LIFO method. Year 12/31/2023 12/31/2024 Year-End Cost $ 250,000 259,000 Cost Index 1.00 1.06 For the year ended 12/31/2024, the company reported inventory of $274,540 (= $259,000 x 1.06). Which of the following statements is correct? Multiple Choice The amount reported for ending inventory should be calculated as $250,000 + ($9,000 ÷ 1.06). The amount reported for ending inventory should be calculated as $259,000+ 1.06. The amount reported for ending inventory is correct. Proy 16 of 16 HH Ch Next
(Appendix 6B) Inventory Costing Methods: Periodic LIFO Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $11 = $1,650 9 Purchase 1 200 units @ $12 = $2,400 14 Sale 1 300 units @ $25 22 Purchase 2 250 units @ $14 = $3,500 225 units @ $25 29 Sale 2 Assume that Bordeaux uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold Cost of ending inventory tA 4100 X 4,400 X
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Problem 6-1B (Algo) Calculate ending inventory and cost of goods sold for four inventory methods (LO6- 3) [The following information applies to the questions displayed below.] Eddy's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Eddy's Fishing Hole uses a periodic inventory system. Date June 1 Transactions Beginning inventory June 7 Sale June 12 Purchase June 15 Sale June 24 Purchase June 27 Sale June 29 Purchase Units Unit Cost Total Cost 16 $320 $5,120 11 10 310 3,100 12 10 300 3,000 8 9 290 2,610 $13,830 Problem 6-1B (Algo) Part 1 Required: 1. Calculate ending inventory and cost of goods sold at June 30, using the specific identification method. The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and…
E7-6 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold FIFO Units Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. LIFO 1,920 Unit Cost $6 5 6,110 4,060 3 2,810 Average Cost
Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $600,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $600 of merchandise inventory shipped to Ann Corp. from a vendor f.o.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $21,600 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $960 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $21,600 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a…
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! Required information E7-11 (Static) Evaluating the Choice among Three Alternative Inventory Methods Based on Income and Cash Flow Effects LO7-2, 7-3 [The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $184,500; ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,200 units; sales price per unit, $75; and average income tax rate, 30 percent. E7-11 Part 3 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that prices were falling? Net income Income taxes paid (cash flow)
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