Sparks Furniture Company carries three lines of sofas. Information about the sofa inventory as of the end of its most recent fiscal year follows. If LCM/NRV is applied to each separate product line, what is the amount of the adjustment that must be made to the company's inventory? Product Line Cost per Unit Rustic $735 635 985 Mediterranean Contemporary Multiple Choice о $30,400 ($82,150) ($36,150) Market Value per Unit Quantity 260 $795 675 720 370 310

Sparks Furniture Company carries three lines of sofas. Information about the sofa inventory as of the end of its most recent fiscal year follows. If LCM/NRV is applied to each separate product line, what is the amount of the adjustment that must be made to the company's inventory? Product Line Cost per Unit Rustic $735 635 985 Mediterranean Contemporary Multiple Choice о $30,400 ($82,150) ($36,150) Market Value per Unit Quantity 260 $795 675 720 370 310

Name: Sparks Furniture Company carries three lines of sofas. Information ab
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Sparks Furniture Company carries three lines of sofas. Information about the sofa inventory as of the end of its most recentfiscal year follows. If LCM/NRV is applied to each separate product line, what is the amount of the adjustment that must bema

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

See similar textbooks

Similar questions

Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory,by Product Category Quantity Per UnitCost Market Furniture: Chairs 40 $ 44 $ 50 Desks 70 92 77 Tables 80 103 111 Accessories: Rugs 40 79 67 Lamps 20 41 37 Required:1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or market…
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, Per Unit By Product Category Quantity Cost Market Furniture: Chairs 40 $40 $ 46 Desks 20 88 73 Tables 60 99 107 Accessories: Rugs 30 75 63 Lamps…
The records of Rami co. show the following data on June 30, 2020, During the month inventory Sold on June 30 was 120 units. Date Explanation Unit Unit Cost Total Cost 1/6 Beginning inventory 60 OMR 5 10/6 Purchase 50 7 on 15/6 Purchase 50 25/6 Purchase 70 Using the Average Method of Inventory, the Cost of Ending inventory is: Select one: O a. OMR 503 O b. OMR 803 Oc OMR 603 d. OMR 903 Oe. OMR 700
You are provided with the following information for Bonita Inc. for the month ended June 30, 2020. Bonita uses the periodic method for inventory. Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 41 $39 June 4 Purchase 138 42 June 10 Sale 113 73 June 11 Sale return 13 73 June 18 Purchase 52 45 June 18 Purchase return 8 45 June 25 Sale 62 79 June 28 Purchase 33 50 (a1) Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Weighted-average cost per unit %24
Crane Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2020. Date January 11 January 24 February 8 March 16 June 11 Quantities Purchased 1,300 630 Sold 330 605 Balance Unit Price of Purchase 430 1,730 1,400 795 1,425 $4.60 $4.80 $5.30 (a) Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method. Ending inventory $ Compute the cost of goods sold for the first 6 months under the periodic FIFO inventory pricing method. Cost of Goods Sold $
What is the correct journal entry, and the empty cells there?
The Strawser-Morris Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1985. In 2024, the company decided to change to the average cost method. Data for 2024 are as follows: Beginning inventory, FIFO (6,900 units @ $49.00) Purchases: 6,900 units @ $55.00 6,900 units @ $59.00 Cost of goods available for sale Sales for 2024 (11,800 units @ $89.00) Additional information: 1. The company's effective income tax rate is 25% for all years. $ 338,100 $ 379,500 407,100 786,600 $ 1,124,700 $ 1,050,200 2. If the company had used the average cost method prior to 2024, ending inventory for 2023 would have been $310,500. 3. 8,900 units remained in inventory at the end of 2024. Required: 1. Prepare the journal entry at the beginning of 2024 to record the change in principle. 2. In the 2024-2022 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2024?
You have the following information for Van Gogh Inc. for the month ended October 31, 2022. Van Gogh uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 60 $24 Oct. 9 Purchase 120 26 Oct. 11 Sale 100 35 Oct. 17 Purchase 100 27 Oct. 22 Sale 60 40 Oct. 25 Purchase 70 29 Oct. 29 Sale 110 40 Weighted-average cost per unit $26.543
A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data, determine inventory cost at the end of 2021 under LIFO and under FIFO. Units Unit Cost 500 $12.00 Purchases 600 11.00 400 11.50 450 12.50 250 13.00 Sold in 2021 1/1/21 3/5/21 7/12/21 10/18/21 12/22/21 1,600 | B) After determining inventory cost (per part A above), LC Company will adjust its inventory to market or net realizable value (NRV). Using the data below for 12/31/21, 1- calculate the market value and the NRV of the 2021 ending inventory 2- show lower of cost or market and lower of cost or NRV, for LIFO and FIFO, as appropriate. 3- If an adjustment is necessary, prepare journal entries to adjust inventory under the direct and indirect methods. Selling Price $16 Selling Cost 3 Normal Profit 4 Replacement Cost $8 Show all calculations for parts A & B.
You have the following information for Van Gogh Inc. for the month ended October 31, 2025.Van Gogh uses a periodic method for inventory. Date Description Units unit cost Selling price per unit 1-Oct Beginning inventory 60 $24 9-Oct Purchase 120 $26 11-Oct Sale 100 $35 17-Oct Purchase 100 $27 22-Oct Sale 60 $40 25-Oct Purchase 70 $29 29-Oct Sale 110 $40 1. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profitrate under LIFO.2. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rateunder FIFO.3. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rateunder Average-cost (round cost per unit to three decimal places.) Please dont provide solution image based thanku
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (5,000 units @ $28) Purchases: 5,000 units @ $34 5,000 units @ $38 Cost of goods available for sale Sales for 2021 (6,000 units @ $74) Additional Information: a. The company's effective income tax rate is 25% for all years. b. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $120,000. c. 9,000 units remained in inventory at the end of 2021. Required 1 $170,000 190,000 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2021 net income? Required 2 $140,000 Complete this question by entering your answers in the tabs below. What is the effect of the change in…
The records of Rami co. show the following data in June 30, 2020, During the month inventory on hand at June 30 was 110 units Date Explanation Unit 1/6 Unit Cost Total Cost Beginning inventory 60 OMR 5 10/6 Purchase 50 on 17 15/6 Purchase 50 25/6 Purchase 70 9 Using the Average Method of Inventory, the Cost of Goods Sold equal: Select one: O a. OMR 1177 Ob. OMR 1277 O c. OMR 1077 O d. OMR 977 O e. OMR 877