on hand. If the company uses FIFO‚ what is the value of the ending inventory? a. $800 b. $832 c. $848 d. $868 6. _____ Effie Company uses a periodic inventory system. Details for the inventory account for the month of January‚ 2014 are as follows: Units Per unit price Total Balance‚ 1/1/14 200 $5.00 $1‚000 Purchase‚ 1/15/14 100 5.30 530 Purchase‚ 1/28/14 100 5.50 550 An end of the month (1/31/14) inventory showed that 160 units were on hand. If the company uses LIFO‚ what is the value of the ending
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205 Week 3_DQs and Journal Week 3 DQ 1 1. The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controllers bonus is based on the next income. It is the controllers belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? Week 3 DQ 2 2. A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods
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COMPREHENSIVE PROBLEM (Chapters 6‚ 7‚ and 8) Case A Req. 1 (in millions) Allowance for uncollectible accounts (XA‚ +A) 1 ............. Accounts receivable (A)............................................ Req. 2 Cash collections for 2008 2 were $5‚711 million. Allowance for Uncollectible Accounts 20 Beg. 5 Bad debt Write-offs ? expense 13 End. 12 12 Accounts Receivable Beg. 558 Sales 5‚710 ? Collections ? Write-offs End. 545 - = Net Realizable Value 538 532 1 Beg. allowance
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(n.d.). Our History. Retrieved from: http://www.jnj.com/connect/about- jnj/company-history/ Mcintosh‚ K. A. (n.d.). ehow What is an Operating Budget?. Retrieved from: http://www.ehow.com/info_7947151_operating-budget.html Peavler‚ R. (n.d.). LIFO and FIFO Inventory Accounting Methods Overview of Two Methods of Accounting for and Tracking Inventory. Retrieved from: http://bizfinance.about.com/od/inventory/a/Inventory_Accounting_LIFO_FIFO.htm
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Reserve for possible losses on purchase commitments d. Excess of replacement cost over LIFO cost of basic inventory temporarily liquidated Answer d 5. Which of the following statements is not valid as it applies to inventory costing methods? a. If inventory quantities are to be maintained‚ part of the earnings must be invested (plowed back) in inventories when FIFO is used during a period of rising prices. b. LIFO tends to smooth out the net income pattern‚ since it matches current cost of goods
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go to this address to get the solution: http://homeworkfox.com/tutorials/business/505/acc-422-week-2-wileyplus-assignment-exercises/ ACC 422 Week 2 WileyPlus Assignment - Exercises Business - Accounting ACC422 Week 2 E7-2 E7-8 E8-5 E8-14 P7-1 E8-25 E7-2 (Determine Cash Balance) Presented below are a number of independent situations. Instructions For each individual situation‚ determine the amount that should be reported as cash. If the item(s) is not reported as cash‚ explain the
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1.0 Introduction Ryan C. Fuhrmann explains that an investing activity usually refers to cash spent on investments in capital assets such as plant and equipment‚ which is collectively referred to as capital expenditure‚ or capex Its mean that investing activities refer to Assets are resources controlled by company for the purposed of generating profit. The assets can classified into two (2) types- current and noncurrent: (1) Current asset (short term) is resources or claims to resources (balance
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Principles). The first approach is first in-first out (FIFO). According to our text FIFO is defined as "the inventory cost-flow assumption that the first cost in inventory are the first costs out to cost of goods sold" (Marshall et al‚ 2004). Typically when dealing with food items FIFO makes that most sense as it reflects the fact that the first food items purchased‚ are the first food items sold. Also typically during times of rising prices the FIFO method will result in lower expenses and higher net
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Standards Based Decision Making Team C June 24‚ 2012 ETH 376 Professor Standards Based Decision Making Green and Associates is the CPA firm retained by the ABC Corporation to handle their external auditing duties. The auditing team at Green and Associates took time to review aspects of ABC’s finances and had some questions regarding their client’s monthly statements that made them a little uneasy. Items such as their inventory valuation methods not to mention‚ Green’s new
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other inventory systems such as FIFO and LIFO. FIFO means‚ first-in-first out. The primary purpose of FIFO inventory management practice in retail stores is to rotate stock so that it remains fresh‚ new‚ and in good condition for the consumer. This practice reduces returns and inventory write downs Conversely‚ LIFO means last in first out.In terms of how a company reports their financials‚ LIFO and FIFO have different advantages and disadvantages. For instance‚ with FIFO‚ as long as a company ’s good
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