Intermediate Accounting 16E Binder Ready Version With Wiley Plus Blackboard
16th Edition
ISBN: 9781119231561
Author: Kieso
Publisher: John Wiley
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Chapter 22, Problem 7E
To determine
First In First Out (FIFO): First in first out (FIFO) is the method of
Last In First Out (LIFO): Last in first out (LIFO) is the method of inventory valuation meaning the goods which are purchased last will be sold first.
(a)
To compute: To record journal entries for the change of inventory method and to compute the net income for the years 2015, 2016, 2017 and 2018.
Given information:
Years |
FIFO($) |
Average cost($) |
LIFO($) |
2015 |
26,000 |
24,000 |
20,000 |
2016 |
30,000 |
25,000 |
21,000 |
2017 |
28,000 |
27,000 |
24,000 |
2018 |
24,000 |
30,000 |
26,000 |
To determine
(b)
To compute: To record journal entries for the change of inventory method and to compute the net income for the years 2015, 2016, 2017, and 2018.
Given information:
Years |
FIFO($) |
Average cost($) |
LIFO($) |
2015 |
26,000 |
24,000 |
20,000 |
2016 |
30,000 |
25,000 |
21,000 |
2017 |
28,000 |
27,000 |
24,000 |
2018 |
24,000 |
30,000 |
26,000 |
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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?
The following data were taken from the records of Splish Brothers Company for the fiscal year ended June 30, 2025.
Raw Materials Inventory 7/1/24
$58,100
Accounts Receivable
$28,000
Raw Materials Inventory 6/30/25
46,600
Factory Insurance
4,800
Finished Goods Inventory 7/1/24
Finished Goods Inventory 6/30/25
99,700
Factory Machinery Depreciation
17,100
21,900
Factory Utilities
29,400
Work in Process Inventory 7/1/24
21,200
Office Utilities Expense
9,350
Work in Process Inventory 6/30/25
29,400
Sales Revenue
560,500
Direct Labor
147,550
Sales Discounts
4,700
Indirect Labor
25,360
Factory Manager's Salary
63,400
Factory Property Taxes
9,910
Factory Repairs
2,500
Raw Materials Purchases
97,300
Cash
39,200
SPLISH BROTHERS COMPANY
Income Statement (Partial)
$
Chapter 22 Solutions
Intermediate Accounting 16E Binder Ready Version With Wiley Plus Blackboard
Ch. 22 - Prob. 1QCh. 22 - 2. State how each of the following items is...Ch. 22 - 3. Discuss briefly the three approaches that have...Ch. 22 - 4. Identify and describe the approach the FASB...Ch. 22 - Prob. 5QCh. 22 - Prob. 6QCh. 22 - Prob. 7QCh. 22 - Prob. 8QCh. 22 - Prob. 9QCh. 22 - Prob. 10Q
Ch. 22 - Prob. 11QCh. 22 - Prob. 12QCh. 22 - Prob. 13QCh. 22 - Prob. 14QCh. 22 - Prob. 15QCh. 22 - Prob. 16QCh. 22 - 17. Elliott Corp. failed to record accrued...Ch. 22 - Prob. 18QCh. 22 - Prob. 19QCh. 22 - Prob. 20QCh. 22 - Prob. 21QCh. 22 - Prob. 1BECh. 22 - Prob. 2BECh. 22 - Prob. 3BECh. 22 - BE22-4 (L02) Tedesco Company changed depreciation...Ch. 22 - Prob. 5BECh. 22 - BE22-6 (L03) In 2017, Bailey Corporation...Ch. 22 - BE22-7 (L03) At January 1, 2017, Beidler Company...Ch. 22 - BE22-8 (L03) Indicate the effect-Understate,...Ch. 22 - Prob. 9BECh. 22 - BE22-10 (L01,3) Palmer Co. is evaluating the...Ch. 22 - Prob. 11BECh. 22 - *BE22-12 (L05) Oliver Corporation has owned stock...Ch. 22 - Prob. 1ECh. 22 - Prob. 2ECh. 22 - Prob. 3ECh. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - E22-11 (L02,3) EXCEL (Error and Change in...Ch. 22 - Prob. 12ECh. 22 - E22-13 (L02) EXCEL (Change in...Ch. 22 - E22-14 (L02) (Change in Estimate-Depreciation)...Ch. 22 - Prob. 15ECh. 22 - E22-16 (L03) (Error Analysis and Correcting Entry)...Ch. 22 - E22-17 (L03) (Error Analysis and Correcting Entry)...Ch. 22 - E22-18 (L03,4) (Error Analysis) Peter Henning Tool...Ch. 22 - E22-19 (L03,4) (Error Analysis; Correcting...Ch. 22 - E22-20 (L03,4) (Error Analysis) The before-tax...Ch. 22 - E22-21 (L03,4) (Error Analysis) When the records...Ch. 22 - Prob. 22ECh. 22 - Prob. 23ECh. 22 - P22-1 (L01) (Change in...Ch. 22 - P22-2 (L01.2.3) EXCEL GROUPWORK (Change in...Ch. 22 - P22-3 (L01,2,3) (Comprehensive Accounting Change...Ch. 22 - P22-4 (L01,2,3) (Error Corrections and Accounting...Ch. 22 - P22-5 (L02) GROUPWORK ETHICS (Accounting Changes)...Ch. 22 - P22-6 (L01,3,4) EXCEL (Accounting Change and Error...Ch. 22 - P22-7 (LO3,4) GROUPWORK (Error Corrections) You...Ch. 22 - P22-8 (L03,4) GROUPWORK (Comprehensive Error...Ch. 22 - P22-9 (L03,4) (Error Analysis) Lowell Corporation...Ch. 22 - P22-10 (L03,4) (Error Analysis and Correcting...Ch. 22 - *P22-11 (L05) (Fair Value to Equity Method with...Ch. 22 - *P22-12 (L05) (Change from Fair Value to Equity...Ch. 22 - CA22-1 GROUPWORK (Analysis of Various Accounting...Ch. 22 - CA22-2 (Analysis of Various Accounting Changes and...Ch. 22 - Prob. 3CACh. 22 - CA22-4 WRITING (Analysis of Various Accounting...Ch. 22 - CA22-5 WRITING (Change in Principle, Estimate) As...Ch. 22 - Prob. 6CACh. 22 - Prob. 1UJCh. 22 - Comparative Analysis Case
The Coca-Cola Company...Ch. 22 - Accounting, Analysis, and Principles In...Ch. 22 - Prob. 1CECh. 22 - Prob. 2CECh. 22 - Prob. 3CECh. 22 - Prob. 4CECh. 22 - Prob. 1CRCCh. 22 - Prob. 1ISTCh. 22 - Prob. 2ISTCh. 22 - Prob. 3ISTCh. 22 - Prob. 4ISTCh. 22 - Prob. 5ISTCh. 22 - Prob. 1ICACh. 22 - Prob. 2ICACh. 22 - Prob. 3ICACh. 22 - Prob. 4ICACh. 22 - Prob. 5ICACh. 22 - Prob. 6ICACh. 22 - Prob. 7ICACh. 22 - Marks and Spencer plc (M&S)
IFRS22-8 The financial...
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- No AIarrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7.In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Assume that a pair of 8" Bean Boots are ordered on December 3, 2015. The order price is $109. The sales tax rate in the state in which the boots are order is 7%. L.L. Bean ships the boots on January 29, 2016. Assume same-day shipping for the sake of simplicity. On what day would L.L. Bean recognize the…arrow_forwardFinancial accounting questionarrow_forward
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