Financial Accounting
18th Edition
ISBN: 9781260706307
Author: Jan Williams
Publisher: Mcgraw-hill Higher Education (us)
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Chapter 8, Problem 3DQ
To determine
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Question:Cost Account
Freeze Frame Camera Shop uses the lower-of-cost-or-net realizable
value for its inventory. The following data are available at December 31.
Item
Units Unit Cost Market Value
Cameras:
Minolta
7
$ 174
$ 153
Cano
10
141
180
Light meters:
Vivitar
15
132
108
Kodak
19
118
135
Determine the amount of the ending inventory by applying the lower-of-
cost-o-net realizable value basis.
provide solution
2) 19-%-A company sells three products: A, B and C in a 5:2:3 sales mix.
Sales price:
A -$9
Variable cost:
A- $6
B-$6
B-$3
Quantity sold:
A-10,000
B-4,000
C - $8
C - $4
C-6,000
Fixed costs are $66,000.
a. 5% - What is the total income or loss the company earns with this sales mix?
b. 9% - Calculate breakeven in total sales dollars and units for the 3 products.
Say the sales mix changes to 3:4: 3 with total quantity sold of 20,000.
c. 5% - What is the total income or loss the company earns with this sales mix?
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1STQCh. 8 - 2. Ace Auto Supply uses a perpetual inventory...Ch. 8 - 3. T-Shirt City uses a periodic inventory system....Ch. 8 - 4. Trendy Department Store uses a perpetual...Ch. 8 - 5. In July of the current year, the accountant for...Ch. 8 - 6. Allied Products maintains a large inventory....Ch. 8 - 1. Briefly describe the rationale for using a cost...Ch. 8 - 2. Under what circumstances do generally accepted...Ch. 8 - 3. A large art gallery has in inventory more than...Ch. 8 - 4. During a period of steadily increasing purchase...
Ch. 8 - 5. What are the characteristics of a just-in-time...Ch. 8 - 6. Why do companies that use perpetual inventory...Ch. 8 - 7. Under what circumstances might a company write...Ch. 8 - 8. What is meant by the year-end cutoff of...Ch. 8 - 9. Explain why errors in the valuation of...Ch. 8 - 10. Briefly explain the gross profit method of...Ch. 8 - 11. A store using the retail inventory method...Ch. 8 - 12. How is the inventory turnover computed? Why is...Ch. 8 - 13. Baxter Corporation has been using FIFO during...Ch. 8 - In anticipation of declining inventory replacement...Ch. 8 - Notes to the financial statements of two clothing...Ch. 8 - BRIEF EXERCISE 8.1
FIFO Inventory
Smalley, Inc.,...Ch. 8 - BRIEF EXERCISE 8.2
LIFO Inventory
Mason Company...Ch. 8 - BRIEF EXERCISE 8.3
Average-Cost Inventory
Fox...Ch. 8 - BRIEF EXERCISE 8.4
FIFO and LIFO Inventory
Murphy,...Ch. 8 - BRIEF EXERCISE 8.5
FIFO and Average-Cost...Ch. 8 - BRIEF EXERCISE 8.6
Inventory Shrinkage
Bruing...Ch. 8 - BRIEF EXERCISE 8.7
Inventory Error
Pixy, Inc.,...Ch. 8 - BRIEF EXERCISE 8.8
Inventory Error
Due to...Ch. 8 - BRIEF EXERCISE 8.9
Inventory Turnover
Alamo...Ch. 8 - BRIEF EXERCISE 8.10
Inventory Turnover
Rouse...Ch. 8 - EXERCISE 8.1
Accounting Terminology
Listed as...Ch. 8 - EXERCISE 8.2
Cost Flow Assumptions
On May 10,...Ch. 8 - EXERCISE 8.3
Physical Flow versus Cost Flow...Ch. 8 - EXERCISE 8.4
Effects of Different Cost Flow...Ch. 8 - EXERCISE 8.5
Transfer of Title
Jensen Tire had two...Ch. 8 - Prob. 6ECh. 8 - EXERCISE 8.7
Costing Inventory in a Periodic...Ch. 8 - EXERCISE 8.8
Effects of Errors in Inventory...Ch. 8 - EXERCISE 8.9
Estimating Inventory by the Gross...Ch. 8 - EXERCISE 8.10
Estimating Inventory by the Retail...Ch. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - EXERCISE 8.13
Inventory Turnover
A recent annual...Ch. 8 - Prob. 14ECh. 8 - EXERCISE 8.15
Using the Financial Statements of...Ch. 8 - Prob. 1APCh. 8 - PROBLEM 8.2A
Alternative Cost Flow Assumptions in...Ch. 8 - PROBLEM 8.3A
Alternative Cost Flow Assumptions in...Ch. 8 - Prob. 4APCh. 8 - PROBLEM 8.5A
Periodic Inventory Costing...Ch. 8 - PROBLEM 8.6A
Effects of Inventory Errors on...Ch. 8 - PROBLEM 8.7A
Retail Method
Between The Ears...Ch. 8 - PROBLEM 8.8A
FIFO versus LIFO Comparisons
Walmart...Ch. 8 - Prob. 1BPCh. 8 - PROBLEM 8.2B
Alternative Cost Flow Assumptions in...Ch. 8 - PROBLEM 8.3B
Alternative Cost Flow Assumptions in...Ch. 8 - Prob. 4BPCh. 8 - PROBLEM 8.5B
Periodic Inventory Costing...Ch. 8 - PROBLEM 8.6B
Effects of Inventory Errors on...Ch. 8 - PROBLEM 8.7B
Retail Method
Song Meister is a...Ch. 8 - PROBLEM 8.8B
FIFO versus LIFO Comparisons
J.C....Ch. 8 - Prob. 1CTCCh. 8 - CASE 8.2
LIFO Liquidation
Jackson Specialties has...Ch. 8 - CASE 8.3
Dealing with the Bank
Millennium Frozen...Ch. 8 - CASE 8.4
Inventory Turnover
A company’s inventory...Ch. 8 - Prob. 2CP
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- The Johnson Manufacturing Company manufactures a single product. The managers, Ron and Ken Johnson decided on December 31, 2005, to adopt the dollar-value LIFO inventory method. The inventory value on that date using the newly adopted dollar-value LIFO method was $500,000. Additional information follows: Inventory at Year-End Prices Year-End Price Index Date Dec 31, 2006 Dec 31, 2007 Dec 31, 2008 $ 6,05,000 5,97,360 7,00,000 1.10 1.14 1.25 Compute the inventory value at December 31 of each year using the dollar-value method, assuming incremental layers are valued at year- end prices.arrow_forwardGreen co.incurs a $15 per pound solve this general accounting questionarrow_forwardGeneral Account POstedarrow_forward
- 3) 12% - The following data is provided for the ABC Company • Budgeted overhead for the year is $400,000 • Projected direct labor cost for the year is $200,000 • Estimated machine hours for the year is 20,000 • Estimated direct labor hours for the year is 20,000 • Overhead is applied to product based on machine hours • During the month of June, the company incurred 3,000 labor hours, used 4000 machine hours and incurred $40,000 of labor costs and $75,000 of overhead costs. Calculate: a. 4% The overhead rate b. 4% - The amount of overhead applied in June c. 4% - The over or under applied overhead for June and explain what it means.arrow_forwardDo fast answer of this question solution general accountingarrow_forwardQuestion:Financial Account The Parsons Company experienced the following costs in 2007: Direct materials Direct labor $4.50/unit $8.00/unit Manufacturing Overhead Costs Variable $2.00/unit $ 1,50,000 Fixed Selling & Administrative Costs Fixed selling Variable selling Fixed administrative $ 15,000 $1.50/unit $ 10,000 During the year the company manufactured 60,000 units and sold 55,000 units. If net income for the year was $114,000 using full costing, what would the net income be if the company used variable costing? Assume no beginning inventories.arrow_forward
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