Chapter 8, Problem 8.13P

Berg Company began operations on January 1, 2019, and uses the FIFO method in costing its raw materials inventory. During 2020, management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Required: What is the effect on income before income taxes in 2020 of a change to the LIFO method?

Bulalugaw's cost of sales in 2020 is 95,000. Their inventory in 2019 and 2020 are 50,000 and 40,000 respectively. Compute for their inventory tunrover.

Cameron Corp. uses the dollar-value-LIFO (DVL) inventory costing method. 2020 is the base year. Information regarding inventory for 2020 – 2022 is as follows: Date Ending Inventory at Current Prices (FIFO) Price Index 12/31/20 725000 100% or 1.0 12/31/21 814000 110% or 1.10 12/31/22 966000 115% or 1.15 What should be the cost of inventory on 12/31/22 using the DVL method? Round all calculations to the nearest whole dollar.

Jan Cahilig Traders started operating in 2020. For the year ended 2020, the sales, purchases, and closing inventory are P600,000, P300,000 and P20,000. What is the cot of goods sold for the year ended 2020?

The inventories of Berry Company for the years 2019 and 2020 are as follows:                                         Cost    NRVJanuary 1, 2019          $10,000    $10,000December 31, 2019    13,000    11,500December 31, 2020    15,000    14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption.  Required:  1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the:  a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?

how did you calculate the 1,1159 for the PPE Net for 2019

The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200

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On December 31, 2019, the inventory of Powhattan Company amounts to $800,000. During 2020, the company decides to use the dollar-value LIFO method of costing inventories. On December 31, 2020, the inventory is $1,053,000 at December 31, 2020, prices. Using the December 31, 2019, price level of 100 and the December 31, 2020, price level of 108, compute the inventory value at December 31, 2020, under the dollar-value LIFO method.