Part A - FIFO vs LIFO In comparing and contrasting FIFO vs. LIFO inventory procedures, the following listing was developed. You are to complete the tabulation with an answer of "YES" or "NO" as demonstrated by the first item. Any combination of yes, no answers is possible in each situation. With the exception of #9, assume no LIFO liquidations. FIFO YES Rart R LIFO NO 0 Usually matches the actual physical flow of goods 1 If used for tax purposes, it must be used for financial reporting purposes. 2 Improves cash flow in periods of rising prices. 3 Tends not to include the effects of rapidly rising (or falling) prices on the income statement 4 Income figure is more “real” in that it doesn't contain "paper profits." 5 A change to this method must be justified in the annual report disclosure notes. 6 Perpetual inventory results may be different from periodic inventory results 7 Is acceptable to the IRS (i.e., for income tax purposes). 8 Emphasizes the income statement in that it matches the recent costs with revenues 9 Possibility of liquidating the base may be a significant negative aspect. 10 Emphasizes the balance sheet in that the more recent costs are contained in the inventory account

Part A - FIFO vs LIFO In comparing and contrasting FIFO vs. LIFO inventory procedures, the following listing was developed. You are to complete the tabulation with an answer of "YES" or "NO" as demonstrated by the first item. Any combination of yes, no answers is possible in each situation. With the exception of #9, assume no LIFO liquidations. FIFO YES Rart R LIFO NO 0 Usually matches the actual physical flow of goods 1 If used for tax purposes, it must be used for financial reporting purposes. 2 Improves cash flow in periods of rising prices. 3 Tends not to include the effects of rapidly rising (or falling) prices on the income statement 4 Income figure is more “real” in that it doesn't contain "paper profits." 5 A change to this method must be justified in the annual report disclosure notes. 6 Perpetual inventory results may be different from periodic inventory results 7 Is acceptable to the IRS (i.e., for income tax purposes). 8 Emphasizes the income statement in that it matches the recent costs with revenues 9 Possibility of liquidating the base may be a significant negative aspect. 10 Emphasizes the balance sheet in that the more recent costs are contained in the inventory account

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter19: Variable Costing (varcost)

Section: Chapter Questions

Problem 5R: Click the Chart sheet tab. This chart is based on the problem data and the two income statements....

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The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based on this flowchart. Required: Under what circumstances can you envision management using alternative one rather than alternative two?
The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based on this flowchart. 1. Some organizations prefer using alternative two. What are the advantages of using alternative two instead of the alternative one? Be specific.
1. Using the data from page 6-5 of the VLN determine the ending inventory using First in First out (FIFO)_____ 2. Using the data from page 6-5 of the VLN determine the ending inventory for Last In First Out (LIFO)_____ 3. Using the data from pages 6-5 and 6-6 of the VLN determine ending inventory for Weighted Average.______ * The first picture is page 6-5 and the second picture is page 6-6
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FASB ASC Research Problems FASB ASC Structure. Each ASC reference is structured as a series of four numbers: a three-digit Topic (the first digit of which represents an Area), a two-digit Subtopic, a two-digit Section, and a two- or three-digit Paragraph. Accounting Changes & Error Corrections A client wishes to change the method by which it values inventory from FIFO to average because it believes average will provide more relevant information and, as result, is preferable. Identify the location in professional standards that indicates when a reporting entity should change an accounting principle. Give the ASC reference numbers for the statement above.
le Three Assignment - ACC X * CengageNOWv2 | Online teachin x m/ilm/takeAssignment/takeAssignmentMain.do?invoker%=&takeAssignmentSessionLocator=&inprogre... 向 n eBook Show Me How Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Market Value per Unit Item Inventory Quantity Cost per Unit (Net Realizable Value) JFW1 68 $24 $28 SAW9 141 12 10 Previous Next Check My Work 6:37 AM 45°F 11/13/2021 4- 9144 brt sc delete PA
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Compute the lower of cost or market for ending inventory applied separately to each product.
a.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO. b.) determine the cost assigned to ending inventory and to cost of good solc using LIFO. c.) compute the gross margin for each method
Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue $ 160,000 Cost of Goods Sold Beginning Inventory $ 20,000 Purchases 101,000 Goods Available for Sale 121,000 Ending Inventory 38,140 Cost of Goods Sold 82,860 77,140 36,000 41,140 8,228 Gross Profit Operating Expenses Income from Operations Income Tax Expense (20%) Net Income $ 32,912 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Replacement Cost per Quantity 2,000 Per Unit $ 4.00 Item Total Unit $ 8,000 4,640 13,500 12,000 A $ 5.00 B 800 5.80 2.90 4,500 2,000 C 3.00 1.45 D 6.00 4.00 $ 38,140
Dashboard CengageNOWV2| Onlin X ps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Calculator Delmar Industries uses the perpetual inventory method in accounting for inventory. Prepare the necessary adjusting entry for each of the following independent cases using the cost of goods sold accoun If an amount box does not require an entry, leave it blank. Case 1 Physical count as of April 30 $43,100 Perpetual inventory records as of April 30 41,800 Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 Apг. 30 If an amount box does not require an entry, leave it blank. Case 2 Physical count as of April 30 $37,800 Perpetual inventory records as of April 30 38,300 Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 Apr. 30 2. 1, 2. 2.
shboard E W Boilermaker unlimi.. uiz 6 Under a perpetual inventory system: Multiple Choice Cost of good sold is recorded with a period-end adjusting entry. Purchase discounts are not recorded. Inventory purchases are recorded only at the end of the period. Cost of goods sold is recorded with each sale. < Prev Type here to search