1(a) Paragon Electronics‚ INC. LIFO Purchases By Paragon Sold to Ending Inventory Cost of goods sold Year Units Unit cost($) Aero Inc Units Unit Cost($) Total($) Unit Unit Cost($) Total($) 1986 100 700 80 20 700 14‚000 80 700 56‚000 1987 100 800 110 10 700 7‚000 100 10 800 700 87‚000 1988 100 850 92 10 8 700 850 7‚000 6‚800 92 850 78‚200 1989 100 750 104 10 4 700 850 7‚000 3‚400 100 4 750 850 78‚400 1990 100 650 94 10 4
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A very short (250 word) opening reflection in which you will identify a problem of urgent importance to Canadian society today and how it might be solved through political or economic change. The common saying‚ “a chain is only as strong as its weakest link‚” can be translated into an analogy to describe modern society. The weakest link‚ in Canada and most other nations are the poor and socially vulnerable. While poverty is often a forgotten issue‚ with the growing unemployment rates‚ increased
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are rising‚ the costs charged to cost of goods sold will be less than if LIFO is used. b). It would be difficult to state absolutely which method is truly in the best interest of the stockholders‚ as FIFO results in lower COGS on the income report; it also results in higher earnings. But when earnings are higher so the taxes are also higher. And when taxes are higher‚ after-tax earnings become lower. On the other hand‚ LIFO results in lower pre-tax earnings since COGS are higher and therefore lower
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The Internet has become an extremely popular place for small businesses and firms to advertise and sell their products. Although this is a very easy and popular way to sell‚ it all depends on how well the company uses its resources and marketing ideas. One company that is widely known across the country and famous for having grown so fast since its online creation is Amazon.com. It opened a whole new market for competitive business in the specialty industries on the computer and has proven to be
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in the storeroom. As a result‚ it may be difficult or impossible to identify an issue of materials with a specific purchase when determining what unit cost should be assigned to the materials being issued. Several practical methods of solving this problem are available. In selecting the method to be employed‚ the accounting policies of the firm and the federal and state income tax regulations must be considered. • First-In‚ First-Out Method. The first-in‚ first-out (FIFO) method of costing has the
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Nash-Finch use to account for its inventory? Where did you find this information? If Nash-Finch uses LIFO for some or all of its inventories‚ what do you think motivated management to select this method? 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
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Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. • Based on the financial statements in 1984 Harnischfeger made changes from the previous year‚ the corporation computed depreciation expenses on plants‚ machinery and equipment using the straight-line method. Prior to
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Module 6 Reporting and Analyzing Operating Assets DISCUSSION QUESTIONS Q6-1. When a company increases its allowance for uncollectible accounts‚ it also records bad debt expense in the income statement. If a company overestimates the allowance account‚ bad debt expense is too high and net income is understated. As well‚ accounts receivable (net of the allowance account) and total assets are both understated on the balance sheet. In future periods‚ the company will not need to add as much
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perhaps the best entities to examine when attempting to understand inventory management systems. The type of inventory a company has determines the method they use. Retail companies use the retail inventory method as a base system. Last-in-First-Out (LIFO) and First-in-First-Out (FIFO) are the two systems that appear to be used more frequently. Other systems used are the Just in Time or JIT method and the Average Cost method. The following paragraphs will describe different companies and the type or
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Overstated as net income is overstated. Ending Inventory: Over Stated Write the letter of the method that is most applicable to each statement. a. Specific identification b. Average cost c. First-in‚ first-out (FIFO) d. Last-in‚ first-out (LIFO) ____A___ 1. Is the most realistic ending inventory ____D___ 2. Results in cost of goods sold being closest to current product costs ____C___ 3. Results in highest income during periods of inflation ____C___ 4. Results in highest ending inventory during
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