FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781264044375
Author: Wild
Publisher: McGraw-Hil
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Chapter 19, Problem 1AA
Manufacturers and merchandisers can apply just-in-time (JIT) to their inventory' management. Apple wants to know the impact of a JIT inventory system on operating c ash flows. Review Apple's statement of c ash flows in Appendix A to answer the following.
Required
1. Identify the impact on operating
2. What impact (increase or decrease) would a JIT inventory system have on Apple's (a) inventory and (b) operating cash flows?
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Manufacturers and merchandisers can apply just-in-time (JIT) to their inventory management. Apple wants to know the impact of a JIT inventory system on operating cash flows. Review Apple’s statement of cash flows in Appendix A to answer the following. Required 1. Identify the impact on operating cash flows (increase or decrease) for changes in inventory levels (increase or decrease) for each of the fiscal years ended September 30, 2017, and September 24, 2016. 2. What impact (increase or decrease) would a JIT inventory system have on Apple’s (a) inventory and (b) operating cash flows?
SHOW COMPUTATIONyou found the following information relating to certain inventory transactions from your observation of the client’s physical count and review of sales and purchases cutoff:
a. Goods costing P180,000 were received from a vendor on January 3, 2021. The goods were not included in the physical count. The related invoice was received and recorded on December 30, 2020. The goods were shipped on December 31, 2020, terms FOB shipping point.b. Goods costing P200,000, sold for P300,000, were shipped on December 31, 2020, and were received by the customer on January 2, 2021. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2020 and the sale was recorded in 2021.c. The invoice for goods costing P150,000 was received and recorded as a purchase on December 31, 2020. The related goods shipped FOB destination were received on January 2, 2021 but were included in the physical inventory as goods in transit.d. A P600,000 shipment of…
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Chapter 19 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
Ch. 19 - Prob. 1DQCh. 19 - Some companies use labor cost to apply factory...Ch. 19 - Prob. 3DQCh. 19 - In a job order costing system, what records serve...Ch. 19 - What journal entry is recorded when a materials...Ch. 19 - Prob. 6DQCh. 19 - Google uses a "time ticket" for some employees....Ch. 19 - What events cause debits to be recorded in the...Ch. 19 - Prob. 9DQCh. 19 - Assume that Apple produces a batch of 1,000...
Ch. 19 - 11. Why must a company use predetermined overhead...Ch. 19 - How would a hospital apply job order costing?...Ch. 19 - Harley-Davidson manufactures 30 custom-made,...Ch. 19 - Prob. 14DQCh. 19 - Jobs and job lots C1 Determine which of the...Ch. 19 - Job cost sheets C2 Clemens Cars's job cost sheet...Ch. 19 - Documents in job order costing P1 P2 P3 The left...Ch. 19 - Raw materials journal entries P1 During the...Ch. 19 - Prob. 5QSCh. 19 - Prob. 6QSCh. 19 - Prob. 7QSCh. 19 - Prob. 8QSCh. 19 - Prob. 9QSCh. 19 - Prob. 10QSCh. 19 - Prob. 11QSCh. 19 - Prob. 12QSCh. 19 - Jab order costing of services A1 An advertising...Ch. 19 - Job order costing of services A1 An advertising...Ch. 19 - Job cost sheet C2 Eco Skate makes skateboards from...Ch. 19 - Exercise 19-1 Job order production C1 Match each...Ch. 19 - Exercise 19-2 Job cost computation C2 The...Ch. 19 - Exercise 19-3 Analysis of cost flows C2 As of the...Ch. 19 - Exercise 19-4 Recording product costs P1 P2 P3...Ch. 19 - Exercise 19-5 Manufacturing cost flows P1 P2 P3...Ch. 19 - Exercise 19-6 Recording events in job order...Ch. 19 - Exercise 19-7 Cost flows in a jab order costing...Ch. 19 - Exercise 19-8 Journal entries for materials P1 Use...Ch. 19 - Exercise 19-9 Journal entries for labor P2 Use...Ch. 19 - Exercise 19-10 Journal entries for overhead P3 Use...Ch. 19 - Exercise 19-11 Overhead rate; costs assigned to...Ch. 19 - Exercise 19-12 Analyzing costs assigned to work in...Ch. 19 - Exercise 19-13 Adjusting factory overhead P4 Refer...Ch. 19 - Exercise 19-14 Adjusting factory overhead P4...Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Exercise 19-17 Overhead rate calculation,...Ch. 19 - Exercise 19-18 Job order costing for services A1...Ch. 19 - Exercise 19-19 Job order costing of services A1...Ch. 19 - Exercise 19-20 Direct materials journal entries P1...Ch. 19 - Problem 19-1A Production costs computed and...Ch. 19 - Problem 19-2 A Source documents, journal entries,...Ch. 19 - Prob. 3APSACh. 19 - Prob. 4APSACh. 19 - Problem 19-5A Production transactions, subsidiary...Ch. 19 - Problem 19-1B Production costs computed and...Ch. 19 - Prob. 2BPSBCh. 19 - Prob. 3BPSBCh. 19 - Problem 19-4B Overhead allocation and adjustment...Ch. 19 - Problem 19-5B Production transactions, subsidiary...Ch. 19 - The computer workstation furniture manufacturing...Ch. 19 - The General Ledger tool in Connect automates...Ch. 19 - Manufacturers and merchandisers can apply...Ch. 19 - Prob. 2AACh. 19 - Apple and Samsung compete in the global...Ch. 19 - Assume that your company sells portable housing to...Ch. 19 - Assume that you are preparing for a second...Ch. 19 - Prob. 3BTNCh. 19 - Consider the activities undertaken by a medical...Ch. 19 - Refer to the chapter opener regarding Brennan...Ch. 19 - Prob. 6BTN
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- Please refer to the picture below for information. Kindly use a Table in showing the complete solution. Thank you so much. Question: What is the correct amount of “Inventory” that should be presented in 2016 Statement of financial position? a. P4,872,000 b. P5,100,000 c. P4,280,000 d. P4,800,000arrow_forward7. Use the following excerpts from Jasper Company’s financial statements and complete the worksheets below to determine cash paid to suppliers for inventory in 2018. From Balance Sheets: Dec. 31, 2018 Dec.31, 2017 Inventory $35,000 $31,000 From Income Statement: 2018 Cost of Goods Sold 175,900 PLEASE NOTE: You are to follow the format shown in the textbook. Step01: Inventory Purchased ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] Step02: Cash paid for Inventory Purchases ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""]…arrow_forwardThe management of Swifty Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average- cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data: Inventories Beginning (8,000 units) Ending (13,000 units) Purchases were made quarterly as follows. Quarter Units 1 50,000 2 (a) 3 4 40.000 40.000 $32,000 60,000 190,000 Unit Cost $4.20 4.35 4.50 4.70 Your Answer Correct Answer Total net sales (185,000 units) Total cost of goods purchased (190,000 units) Total Cost $210,000 174,000 180,000 282,000 $846,000 Operating expenses were $130,000, and the company's income tax rate is 40%. Purchases and Sales Prepare comparative condensed income statements for 2022 under FIFO and LIFO. SWIFTY INC. Condensed Income Statements December 31, 2022 For the Year Ended December 31, 2022 For the Month Ended December 31, 2022 $1,137,750…arrow_forward
- Riderco Pool Supplies' merchandise inventory data for the year ended December 31, 2025, follow: (Click the icon to view the inventory data.) Read the requirements. Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2025 would be Data table Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Print Done $ 5,700 45,300 51,000 4,300 $ $ 60,000 46,700 13,300 X Requirements 1. Assume that the ending merchandise inventory was accidentally overstated by $1,000. What are the correct amounts for cost of goods sold and gross profit? 2. How would the inventory error affect Riderco Pool Supplies' cost of goods sold and gross profit for the year ended December 31, 2026, if the error is not corrected in 2025?…arrow_forwardweat subject-Accountingarrow_forwardInstruction: Please use moving average in answering the questions (disregard FIFO)arrow_forward
- Use the following excerpts from Huckleberry Company's financial statements and complete the worksheets below to determine cash paid to suppliers for inventory in 2018. From Balance Sheets: Inventory Accounts Payable Dec. 31, 2018 $ 74,000 55,000 Dec. 31, 2017 $82,000 58,000 From Income Statement: 2018 Cost of Goods Sold $520,000 PLEASE NOTE: You are to follow the format shown in the textbook. Step01: Inventory Purchased ( Select 1 [ Select ] [ Select ] | Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] Step02: Cash paid for Inventory Purchases | Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] | Select ] > > > > > > > > > > > >arrow_forwardPresented below is information related to Novak Company. December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 2017 2018 Date 2019 2020 2021 2022 $ LA $ Ending Inventory (End-of-Year Prices) $ 84,500 267,624 267,300 LA 301,204 Compute the ending inventory for Novak Company for 2017 through 2022 using the dollar-value LIFO method. 355,635 419,562 Price Index Ending Inventory 100 236 270 293 315 326arrow_forwardNeed Help with this Questionarrow_forward
- need to enter the beginning balances in the summary and record the April transactions using a perpetual inventory system. include margin explanations for the changes in revenues and expenses please answer in text with workings and stepsarrow_forwardBusiness Markdown Systems uses a perpetual inventory system. The adjusted trial balance of Business Markdown Systems at March 31, 2024, follows: (Click the icon to view the adjusted trial balance.) Prepare Business's multi-step income statement for the year ended March 31, 2024. (Use a minus sign or parentheses to show other expenses.) Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Business Markdown Systems Income Statement Year Ended March 31, 2024 Selling Expense Administrative Expense Total Operating Expenses Operating Income Other Income and (Expenses): Sales Discounts Forfeited Interest Expense Total Other Income and (Expenses) Net Income (Loss) 27000 14800 600 2600 106200 Data table Business Markdown Systems Adjusted Trial Balance March 31, 2024 Account Title Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Refunds Payable Salaries Payable Notes Payable,…arrow_forwardAZ Pool Supplies's merchandise inventory data for the year ended December 31, 2017, follow: E (Click the icon to view the inventory data.) Requirements Assume that the ending merchandise inventory was accidentally overstated by $1,800. What are the correct amounts for cost of goods sold and gross profit? How would the inventory error affect AZ Pool Supplies's cost of goods sold and gross profit for the year ended December 31, 2018, if the error is not corrected in 2017? 1. 2. Requirement 1. Assume that the ending merchandise inventory was accidentally overstated by $1,800. What are the correct amounts for cost of goods sold and gross profit? Cost of goods sold in 2017 would be $34500 Data Table Sales Revenue 71,000 Cost of Goods Sold: Beginning Merchandise Inventory %24 3,600 Net Cost of Purchases 25,100 Cost of Goods Available for Sale 28,700 Less: Ending Merchandise Inventory 5,100 Enter your answer in the answer box and then click Check Answer. Cost of Goods Sold 23.600 47,400 Gross…arrow_forward
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