Sheinberg Industries reported 2023 sales ($ in millions) of $6,842 and a cost of goods sold of $5,120. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $89.6 million and $73.2 million higher in 2023 and 2022, respectively. If Sheinberg used the FIFO method exclusively, it would have reported 2023 gross profit closest to? a. $1,110.5 million b. $1,319.1 million c. $1,738.4 million

Sheinberg Industries reported 2023 sales ($ in millions) of $6,842 and a cost of goods sold of $5,120. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $89.6 million and $73.2 million higher in 2023 and 2022, respectively. If Sheinberg used the FIFO method exclusively, it would have reported 2023 gross profit closest to? a. $1,110.5 million b. $1,319.1 million c. $1,738.4 million

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 5E: Fava Company began operations in 2018 and used the LIFO inventory method for both financial...

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Sheinberg Industries reported 2023 sales ($ in millions) of $6,842 and a cost of goods sold of $5,120. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $89.6 million and $73.2 million higher in 2023 and 2022, respectively. If Sheinberg used the FIFO method exclusively, it would have reported 2023 gross profit closest to? a. $1,110.5 million b. $1,319.1 million c. $1,738.4 million MCQ
Sheinberg Industries reported 2023 sales ($ in millions) of $6,842 and a cost of goods sold of $5,120. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $89.6 million and $73.2 million higher in 2023 and 2022, respectively. If Sheinberg used the FIFO method exclusively, it would have reported 2023 gross profit closest to? a. $1,110.5 million b. $1,319.1 million c. $1,738.4 million
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In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2023, B & B’s inventories were $32.2 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.9 million at December 31, 2023, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
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Sheffield Inc. reported the following partial statement of income data for the years ended December 31, 2024 and 2023: Sales Cost of goods sold Gross profit (a) The company reported inventory in the statement of financial position at $46,000, $49,500, and $48,000 at the end of 2022, 2023, and 2024, respectively. The ending inventory amounts for 2022 and 2024 are correct. However, the company has understated the ending inventory at December 31, 2023, by $7,620. Sales 2024 $263,000 Cost of goods sold 204,000 $59,000 Your answer has been saved. See score details after the due date. Prepare correct statements of income for 2023 and 2024 through to gross profit. 2024 Gross profit (b) 2023 $254,000 199,390 $54,610 $ eTextbook and Media 263000 211620 51380 $ $ 2023 Cumulative effect of the inventory error on total gross profit $ 254000 191770 62230 Attempts: 1 of 1 used What is the cumulative effect of the inventory error on total gross profit for these two years? (If answer is zero, please…
During 2025, Vaughn Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2024 and 2023 (Vaughn's first year of operations) under FIFO was $172,490 and $196,830, respectively. Pretax income using weighted-average pricing in the prior years would have been $154,000 in 2024 and $188,000 in 2023. In 2025, Vaughn reported pretax income (using weighted- average pricing) of $220,600. Show comparative income statements for Vaughn, beginning with "Income before income tax as presented on the 2025 income statement. (The tax rate in all years is 3096) Income before income tax Income tax Net income $ $ 2025 2024 $ $ 2023
You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the 2023 sales of P 120,000 were recorded in 2022; goods were excluded in the 2022 ending inventory at a cost of 70,000. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) overstated by P 120,000 at the end of year 2022 as a result of the error? Select 1 sales Onlv a. Sales and Accounts Receivable b. Inventory, December 31, 2022 only c. Retained Earnings only Question 2: Which of the following accounts is (are) understated by p 70,000 at the end of year 2022 as a result of the error? Select 1 a. retained earnings b. inventory, december 31,2022 c. sales and accounts receivable d. sales and retained earnings
Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. FIFO Average-Cost 2017 $26,000 $23,000 2018 30,000 25,000 2019 29,000 27,000 2020 34,000 30,000 (ignore tax considerations) Required: a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020. b. Assume that in 2020 New Girl, which had been using the average-cost method since beginning operations in 2017, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2020, and show net income reported for 2017, 2018, 2019, and 2020.
In 2022, Kimberly Corporation changed its method of inventory pricing from LIFO to FIFO. Net income computed on a LIFO as compared to a FIFO basis for the four years involved is: (Ignore income taxes.) LIFO FIFO 2019 $78,600 $87,400 2020 84,000 88,900 2021 86,800 90,600 2022 92,800 92,200 (a)Indicate the net income that would be shown on comparative financial statements issued at 12/31/22 for each of the four years, assuming that the company changed to the FIFO method in 2022. Net Income 2019 $ 2020 $ 2021 $ 2022 $
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
What was the amount of Hendrix's cost of goods sold for 2022?