The inventory footnate from Deere & Company's 2018 10-K follows.Inventories A majority of Inventory owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining Inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. The value of gross inventories on the LIFO basis at October 28, 2018,and October 29, 2017, represented 54 percent and 61 percent, respectively, of worldwide gross inventories at FIFO value. If all Inventories had been valued on a FIFO basis, estimated Inventories by major classification at October 28, 2018, and October 29, 2017, in millions of dollars would have been as follows:2018 2017$2,233 $1,6887764,777 3,1827,786 5,3651,637 1,461$ millionsRaw materials and suppliesWork-in-processFinished goods and partsTotalvelueLess adjustment to LIFO value 1,637Inventories495$6,149 $3,904This footnote reveals that not all of Deere's Inventories are reported using the same inventory costing method (companies can use different inventory costing methods for different inventory pools).a. What amount does Deere report for inventories on its 2018 balance sheets? $ 6,149b. What would Deere have reported as inventories on its 2018 balance sheet had the company used FIFO Inventory costing for all of its inventories? $ 7,786milionDeere's cumulative pretax income has decreased by $ 1,637c. What cumulative effect has the use of LIFO Inventory costing had, as of year-end 2018, on Deere's pretax income compared with the pretax income it would have reported had it used FIFO inventory costing for all of its inventories?milion since it adopted LIFO inventory costing.milion.d. Assuming an average (cumulative) Income tax rate of 30%, by what cumulative dollars amount has Deere's tax expense been affected by use of LIFO Inventory costing as of year-end 2018? Has the use of LIFO inventory casting increased or decreased Deere's cumulative tax expense?(Round answer to one decimal place.)Deere's cumulative Income taxes were lower by $ 499.1milionmillion as compared to the taxes that would've been paid under the FIFO system.e. What effect has the use of LIFO inventory costing had on Deere's pretax income and tax expense for 2018 only (assume a 21% Income tax ratej?(Round answers to one decimal place, if applicable.)2018 pretax income increased by 1762018 tax expense increased by $ 37 milion.

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The inventory footnate from Deere & Company's 2018 10-K follows. Inventories A majority of inventory owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the "lastin, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. The value of gross inventories on the LIFO basis at October 28, 2018, and October 29, 2017, represented 54 percent and 61 percent, respectively, of worldwide gross inventories at FIFO value. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 28, 2018, and October 29, 2017, in millions of dollars would have been as follows: 5 millions Fished goods and parts Total value Less adjustment to UFO value 2018 2017 $2,233 $1,688 776 495 4,777 3,182 1,637 1,461 $6,149 $3,004

The inventory footnate from Deere & Company's 2018 10-K follows. Inventories A majority of inventory owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the "lastin, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. The value of gross inventories on the LIFO basis at October 28, 2018, and October 29, 2017, represented 54 percent and 61 percent, respectively, of worldwide gross inventories at FIFO value. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 28, 2018, and October 29, 2017, in millions of dollars would have been as follows: 5 millions Fished goods and parts Total value Less adjustment to UFO value 2018 2017 $2,233 $1,688 776 495 4,777 3,182 1,637 1,461 $6,149 $3,004

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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Masthead Company's comparative balance sheets included an inventory of $180,400 at December 31, 2009, and $241,200 at December 31, 2010. Masthead's comparative balance sheets also included accounts payable of $85,400 at December 31, 2009, and $78,400 at December 31, 2010. Masthead's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Masthead on its 2010 income statement, amounted to $1,200,000. What is the amount of cash payments for inventory that Masthead will report in the Operating Activities category of its 2010 statement of cash flows assuming that the direct method is used?
During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 What is the effect on January 1, 2022 inventory and on Retained Earnings? (A) no effect B January 1, 2022 inventory understated and Retained Earnings understated January 1, 2022 inventory understated and Retained Earnings overstated January 1, 2022 inventory overstated and Retained Earnings overstated
11.The inventory account of Papaya Company at December 31, 2021 has a balance of P1,800,000 and was found to include the following items:*Goods purchased in transit, FOB shipping point, P130,000*Goods held on consignment, P56,000*Goods out on approval, at sales price of P32,500 (cost is P25,000)What is the correct amount of inventory at December 31, 2021?
Nm. 152.
Presented below is information related to X Company "Date End - of- Ending Inventory Year ) ( FIFO ) Price Index 2022 100,000 100 2023 229,000 103 2024 218,658 110 2025 239,700 115 2026 170,000 125 Instructions : What's JOURNAL ENTRIES for X company ?
How would each of these transactions affect the accounting equation?1) Purchasing £800 worth of inventory on credit. 2) Paying the telephone bill of £25.3) Selling £450 worth of inventory for £650.4) Paying £800 to the supplier.
PLEASE ANSWER IMMEDIATELY
Current Attempt in Progress Marigold Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $368,080 at both cost and net realizable value. At December 31, 2025, the inventory was $491,920 at cost and $455,800 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation (a) (b) e Textbook and Media List of Accounts Save for Later Debit Credit Attempts: 1 of 3 used Submit Answer
41. What is the ending inventory at estimated cost using the First-in, First-out inventory method?
Hh1. just Item E and Item G
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