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periods of rising prices? • EX 6-15 Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory. Assemble the data in the form illustrated in Exhibit 10. Obj. 6 TE Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Product Class 1: Model A Model B 300 $140 $125 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 115 Model E 400 140 145 EX 6-16 Inventory on the balance sheet Based on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet. Obj. 6 EX 6-17 Fffect of

periods of rising prices? • EX 6-15 Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory. Assemble the data in the form illustrated in Exhibit 10. Obj. 6 TE Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Product Class 1: Model A Model B 300 $140 $125 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 115 Model E 400 140 145 EX 6-16 Inventory on the balance sheet Based on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet. Obj. 6 EX 6-17 Fffect of

FINANCIAL ACCOUNTING
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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Only ex 6-15
Chapter 6 Inventories system is used. Determine the ending inventory cost and the cost of goods sold by three methods, There are 208 units of the item in the physical inventory at December 31. The periodic inventory Assume that a firm separately determined inventory under FIFO and LIFO and then compared presenting your answers in the following form: Cost of Goods Sold Ending Inventory Inventory Method a. First-in, first-out b. Last-in, first-out c. Weighted average cost Obj. 5 EX 6-14 Comparing inventory methods the results. a. In each space that follows, place the correct sign [less than (<), greater than (>), or equal (au for each comparison, assuming periods of rising prices. LIFO inventory LIFO cost of goods sold 1. FIFO inventory 2. FIFO cost of goods sold 3. FIFO net income 4. FIFO income taxes LIFO net income LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices? , EX 6-15 Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory Assemble the data in the form illustrated in Exhibit 10. Obj. 6 (X) SMOW ME HOW EXCEL TEMPLATE Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Product Class 1: Model A 300 $140 $125 Model B 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 140 115 Model E 400 145 EX 6-16 Inventory on the balance sheet Based on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet. Obj. 6 EX 6-17 Effect of errors in physical inventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400,. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. b. State the effects of the error on the income statement of Madison River Supply for the yeur ended December 31, 20Y8. Obj. 6 EXCEL TEMPLATE c. If uncorrected, what would be the effects of the error on the 20Y9 income statement? d. If uncorrected, what would be the effects of the error on the December 31, 201A balance sheet?
Transcribed Image Text:Chapter 6 Inventories system is used. Determine the ending inventory cost and the cost of goods sold by three methods, There are 208 units of the item in the physical inventory at December 31. The periodic inventory Assume that a firm separately determined inventory under FIFO and LIFO and then compared presenting your answers in the following form: Cost of Goods Sold Ending Inventory Inventory Method a. First-in, first-out b. Last-in, first-out c. Weighted average cost Obj. 5 EX 6-14 Comparing inventory methods the results. a. In each space that follows, place the correct sign [less than (<), greater than (>), or equal (au for each comparison, assuming periods of rising prices. LIFO inventory LIFO cost of goods sold 1. FIFO inventory 2. FIFO cost of goods sold 3. FIFO net income 4. FIFO income taxes LIFO net income LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices? , EX 6-15 Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory Assemble the data in the form illustrated in Exhibit 10. Obj. 6 (X) SMOW ME HOW EXCEL TEMPLATE Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Product Class 1: Model A 300 $140 $125 Model B 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 140 115 Model E 400 145 EX 6-16 Inventory on the balance sheet Based on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet. Obj. 6 EX 6-17 Effect of errors in physical inventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400,. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. b. State the effects of the error on the income statement of Madison River Supply for the yeur ended December 31, 20Y8. Obj. 6 EXCEL TEMPLATE c. If uncorrected, what would be the effects of the error on the 20Y9 income statement? d. If uncorrected, what would be the effects of the error on the December 31, 201A balance sheet?
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