Sanborn Inc. is a new manufacturing company founded on February 2, 2012. The company had to choose between the LIFO and FIFO methods for its inventory. Inventory costs were rising during 2012, so the company decided to use the LIFO method. Which of the following items would be decreased by the choice of LIFO (compared to what would have happened if they chose to use FIFO)? (check all that apply) Inventory Net Income Accounts Payable Cost of Goods Sold Cash Taxes Paid

Sanborn Inc. is a new manufacturing company founded on February 2, 2012. The company had to choose between the LIFO and FIFO methods for its inventory. Inventory costs were rising during 2012, so the company decided to use the LIFO method. Which of the following items would be decreased by the choice of LIFO (compared to what would have happened if they chose to use FIFO)? (check all that apply) Inventory Net Income Accounts Payable Cost of Goods Sold Cash Taxes Paid

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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(LCNRV—Error Effect) LaGreca Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, included product X. Relevant per-unit data for product X are as follows. Estimated selling price $50Cost 40Estimated selling costs 14Normal profit 9 There were 1,000 units of product X on hand at December 31, 2017. Product X was incorrectly valued at $38 per unit for reporting purposes. All 1,000 units were sold in 2018.InstructionsCompute the effect of this error on net income for 2017 and the effect on net income for 2018, and indicate the direction of the misstatement for each year.
F112.
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Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information: Unit Selling Price (Updated) P 400 1,300 1,700 1,250 600 Ave. Unit No. Brand Туре Size Units Unit Cost Cost to Sell P 70 001 A 002 A 003 A 004 B 005 B 006 B How much should be reported as loss from inventory write-down? Water-based 4-liter Water-based 16-liter Р 350 1,150 1,200 1,075 400 10 20 250 Аcrylic Water-based 16-liter Acrylic Acrylic 16-liter 20 300 5 200 4-liter 15 70 16-liter 10 1,250 2,000 250
Instruction: Please use moving average in answering the questions (disregard FIFO)
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