An end of the month (1/31/14) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory?…
After our discussion, we recommend that John and Mark should not sell the Mile High Tree Farm Company now. And our conclusion is based on the following reasons.…
FastFit Sporting Goods is a successful New England regional supplier of sporting goods to the high end consumer market. They sell an exclusive selection of equipment and apparel to men and women who exercise and pursue outdoor activities on a regular basis. They operate five (5) upscale retail stores in the New England market that offer a high level of customer attention, with a headquarters (HQ) is in Burlington, Massachusetts, and a single warehouse, distribution, and eCommerce fulfillment center in Haverhill, Massachusetts. Most of their products are purchased from two suppliers, Winter Gear Distributers outside of Providence, Rhode Island, and Boston Fitness Supplies in Marlboro, Massachusetts. FastFit has expanded successfully in the New England area over the past five years. However to expand nationally as a major retailer, they need to improve the scalability of their operations (stores and warehouses). A key part of their strategy is to leverage information systems to automate and improve operations, to strengthen management controls, and to enable significant growth while maintaining the “high touch” customer experience. A diagram of their complete non-Web based operations follows. See figure 1.…
method of accounting for inventory than it would have paid if it had used the LIFO method?…
Reflect for a moment on the LIFO (Last in First Out) and FIFO (First in First Out) inventory methods. If you were starting a small manufacturing company, what inventory method do you believe would provide the most accurate…
Anheuser-Busch is America’s most popular brewery. At Anheuser-Busch we only accept excellence in the products we make and excellence in the people that help make them. With 46.4% market share in the U.S., we pride ourselves on the ability to take only the finest ingredients and produce world-class beer. Anheuser-Busch has strong brand awareness and loyal consumers. With that said, we face the challenge of potential loss in market share due to an increase in craft breweries and changes in our consumers taste.…
Under the inventories footnotes, below the financial statements (page 46), Nash-Finch says that 79% of their inventories are valued with LIFO. The additional 21% is calculated using FIFO. By using LIFO, Nash-Finch is able to report lower holding inventories by $90.7 million for 2012. Being able to report lower inventories lets the company defer holding gains and not pay taxes on that additional amount of inventory. They are also able to post higher cash flows from operating activities, which makes the company look better.…
FIFO. (YES. First in First Out (FIFO) is the inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are…
As you know, choosing LIFO or FIFO for inventory will affect our P&L statements. If costs stay where they are now, we will want to see how we can move to LIFO. If costs go up as we expect next year, we should stay with FIFO inventory.…
In the case, the University Store provided plenty of goods and services with various costs. They frequently have their costs, selling prices and discounted prices changed. This process would contain a large amount of work since the Store kept large number of books. Although the Store has planned to record data by establishing a new software system, they used the retail method easing and simplifying inventory tracking.…
Compute the April 30 inventory and the April cost of goods sold using the FIFO method.…
The inventory method used by Macy’s Inc. is the last in, first out (LIFO) inventory method. The depreciation method used is straight-line depreciation. The estimated useful life for buildings and building equipment ranges from fifteen to fifty years and it ranges from three to fifteen years…
Four people are needed to close Buffalo Hardee’s: a frontliner, a manager, a pre-closer, and a closer. Each person has their own responsibilities. As the closer I only know the closer’s closing responsibilities. Everything is broken into categories by the time that they should be completed.…
Perpetual inventory system: journal entries. a. FIFO • 1/2/20X3 Purchases on account: 500 units @ $6 = $3,000 Dr Merchandise Inventory 2,000 Cr Accounts Payable 2,000 • 1/15/20X3 Sales on account: 300 units @ $8.50 = $2,550 Dr Accounts Receivable 2,550 Cr Sales 2,550 Dr Cost of Goods Sold 1,200 (300 x $4) Dr Merchandise Inventory 1,200 • 1/20/20X3 Purchases on Account: 200 units @ $5 = $1,000 Dr Merchandise Inventory 1,000 Cr Accounts Payable 1,000 • 1/25/20X3 Sales on Account: 300 units @ $8.50 = $2,550 Dr Accounts Receivable 2,550 Cr Sales 2,550 Dr Cost of Goods Sold 1,300 (200 x $4)…
A= FIFO makes sense during times of rising prices because it allows the firm to eliminate the lower-priced inventory first, which results in higher profit margins.…