Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 20, Problem 20.24E
Inventory errors
• LO20–6
Indicate with the appropriate letter the nature of each adjustment described below:
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Which inventory method is least likely to be used under IFRS? A . First in, fi rst out (FIFO).
Chapter 20 Solutions
Intermediate Accounting
Ch. 20 - Prob. 20.1QCh. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3QCh. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8QCh. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...
Ch. 20 - Prob. 20.11QCh. 20 - Describe the process of correcting an error when...Ch. 20 - Prob. 20.13QCh. 20 - If it is discovered that an extraordinary repair...Ch. 20 - Prob. 20.15QCh. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; average cost method...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 Irwin, Inc.,...Ch. 20 - Prob. 20.5BECh. 20 - Book royalties LO204 Three programmers at Feenix...Ch. 20 - Warranty expense LO204 In 2017, Quapau Products...Ch. 20 - Change in estimate; useful life of patent LO204...Ch. 20 - Prob. 20.9BECh. 20 - Error correction LO206 In 2018, internal auditors...Ch. 20 - Prob. 20.11BECh. 20 - Error correction LO206 In 2018, the internal...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change in principle; change in inventory methods ...Ch. 20 - Change from the treasury stock method to retired...Ch. 20 - Change in principle; change to the equity method ...Ch. 20 - Prob. 20.5ECh. 20 - FASB codification research LO202 Access the FASB...Ch. 20 - Change in principle; change in inventory cost...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in inventory methods; FIFO method to the...Ch. 20 - Change in depreciation methods LO203 For...Ch. 20 - Change in depreciation methods LO203 The Canliss...Ch. 20 - Book royalties LO204 Dreighton Engineering Group...Ch. 20 - Loss contingency LO204 The Commonwealth of...Ch. 20 - Warranty expense LO204 Woodmier Lawn Products...Ch. 20 - Prob. 20.15ECh. 20 - Accounting change LO204 The Peridot Company...Ch. 20 - Change in estimate; useful life and residual value...Ch. 20 - Classifying accounting changes LO201 through...Ch. 20 - Error correction; inventory error LO206 During...Ch. 20 - Error corrections; investment LO206 Required: 1....Ch. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Inventory errors LO206 Indicate with the...Ch. 20 - Classifying accounting changes and errors LO201...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - P 20-2 Change in principle; change in method of...Ch. 20 - Change in inventory costing methods; comparative...Ch. 20 - Change in inventory methods LO202 The Rockwell...Ch. 20 - Change in inventory methods LO202 Fantasy...Ch. 20 - Change in principle; change in depreciation...Ch. 20 - Depletion; change in estimate LO204 In 2018, the...Ch. 20 - Accounting changes; six situations LO201, LO203,...Ch. 20 - Prob. 20.9PCh. 20 - Inventory errors LO206 You have been hired as the...Ch. 20 - Error correction; change in depreciation method ...Ch. 20 - Accounting changes and error correction; seven...Ch. 20 - Prob. 20.13PCh. 20 - Prob. 20.14PCh. 20 - Prob. 20.15PCh. 20 - Prob. 20.16PCh. 20 - Prob. 20.17PCh. 20 - Integrating Case 201 Change to dollar-value LIFO ...Ch. 20 - Prob. 20.2BYPCh. 20 - Prob. 20.3BYPCh. 20 - Analysis Case 204 Change in inventory methods;...Ch. 20 - Prob. 20.5BYPCh. 20 - Prob. 20.6BYPCh. 20 - Analysis Case 208 Various changes LO201 through...Ch. 20 - Analysis Case 209 Various changes LO201 through...Ch. 20 - Prob. 20.10BYPCh. 20 - Prob. 20.11BYPCh. 20 - Prob. 20.12BYPCh. 20 - Prob. 1CCTC
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- Which of the following would cause periodic ending inventory to be overstated? *arrow_forward7/ Which one of the following methods can be applied in situations where different purchases can be physically separated, and each item sold and remaining in inventory is identified? a. All b. First In First Out (FIFO) c. Specific Identification d. Weighted Averagearrow_forwardDescribe Change in Inventory Method and Inventory Errors.arrow_forward
- ACC340 Accounting Systems I Chapter 15: P 15-5, page 612: Based on the inventory process control goals discussed in this chapter, explain the impact of using a periodic inventory process instead of a perpetual process. Be sure to also discuss how you would design the process to attempt to meet the same control objectives using this periodic process.arrow_forward(4+6) Q.4Compare and contrast the different approaches for inventory system. How will you record under different approaches (support your answer with the help of journal entries? Tabulate the factors which contribute towards selection of these approaches.arrow_forwardWhat is the correct inventory value using lower LCM rule for case 5? What is the correct inventory value using lower LCNRV (ceiling and floor) rule? for case 3 ?arrow_forward
- Explain the difference between perpetual inventory system and periodic inventory system. (pg 144-146)arrow_forwardH6. Lower of cost or market is an attribute used for the: a. initial measurement of accounts receivable b. subsequent measurement of inventory c. subsequent measurement of accounts receivable d. initial measurement of inventory Explain All wrong options and explain with full detailsarrow_forwardWhich of the following, if compared to the other methods for valuing inventory, has a material difference? A. LIFO B: FIFO C: Weighted Average D: Specific Identification.arrow_forward
- Exercises L06-4 2924 5019 v2 gain This exercise stresses the relationships between the information recorded in a periodic inventory 1 EXERCISE 6.8 Relationships within Periodic Inventory Systems system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. A net loss in the right-hand column is to be indicated by placing brackets around the amount, for example as in line e . 10 val2 Net Sales SAT u Isroish engewolley 10 as lodes bra naje od prols burdaud 15d bas dem oft moleivolal no obrint wo Ideas no sonsled osnoval 00442 5w 25an L06-5, L06-8 EXERCISE 6.9 Selecting an Inventory System instave promovni ofborne. H? niend nogal AbeBSTRUO. nisiqu Ending Inventory Phimb znotranca. Beginning Net Pur- Inventory chases UON DOS 2.210 95,200 264,000 to ? ? 35.200 104,000 76,000 a. 240,000 ai loreng salamat ainwalidw v10105 i taida! od 520) ? wif 72,000 272,000 b. 480,000 01040 Coloravitat 441,000…arrow_forwardH2.arrow_forwardPart A - FIFO vs LIFO In comparing and contrasting FIFO vs. LIFO inventory procedures, the following listing was developed. You are to complete the tabulation with an answer of "YES" or "NO" as demonstrated by the first item. Any combination of yes, no answers is possible in each situation. With the exception of #9, assume no LIFO liquidations. FIFO YES Rart R LIFO NO 0 Usually matches the actual physical flow of goods 1 If used for tax purposes, it must be used for financial reporting purposes. 2 Improves cash flow in periods of rising prices. 3 Tends not to include the effects of rapidly rising (or falling) prices on the income statement 4 Income figure is more “real” in that it doesn't contain "paper profits." 5 A change to this method must be justified in the annual report disclosure notes. 6 Perpetual inventory results may be different from periodic inventory results 7 Is acceptable to the IRS (i.e., for income tax purposes). 8 Emphasizes the income statement in that it matches…arrow_forward
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INVENTORY & COST OF GOODS SOLD; Author: Accounting Stuff;https://www.youtube.com/watch?v=OB6RDzqvNbk;License: Standard Youtube License