2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…

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Textbook Question

Chapter 10, Problem 10.7P

Dollar-Value LIFO. LIFO Liquidation. Silvio's Taverns, Inc. adopted the dollar-value LIFO Method in 2015 Information related to Silvio's inventory follows:

Year	Ending Inventory at End-of-Year Prices per FIFO	Cumulative Price Index
2015	$505,000	100
2016	612,000	103
2017	645,000	108
2018	487,000	112
2019	610,000	119

Required

a. Compute Silvio's ending inventory under the dollar-value LIFO method for the years 2015 through 2019
b. Prepare the journal entries for 2016 through 2019 to adjust inventory to the dollar-value LIFO basis.
c. Determine the ending balance of the LIFO reserve for 2016 through 2019.

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.

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Chapter 10, Problem 10.6P

Chapter 10, Problem 10.8P

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This Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows: Actual overhead variable costs Standard hours allowed for actual production Actual labor hours worked $ 78,000 10,000 9,800 How much is the controllable overhead spending variance? a. $2,000 favorable b. $400 favorable c. $400 unfavorable d. $2,000 unfavorable

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Chapter 10 Solutions

Intermediate Accounting (2nd Edition)

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Solution Summary: The author explains the dollar value LIFO method to compute cost of goods sold by assuming that inventory purchased at last is sold first.

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Chapter 10 Solutions