the Beginning Inventory 1020.00 21.20 21624.00 From the first purchase 700.00 21.50 15050.00 From the second purchase 700.00 21.50 15050.00 Inventory Statement for 2006‚ FIFO Method Cost of Goods Sold Cost of Goods Sold Total / Cost of Goods Sold Ending Inventory Total / Ending Inventory Inventory Statement for 2005‚ FIFO Method From the third purchase 660.00 22.00 14520.00 3080.00 66244.00 From the third purchase 40.00 22.00 880.00 From the fourth purchase 1000.00 22.25 22250.00 1040
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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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and state income tax regulations must be considered. • First-In‚ First-Out Method. The first-in‚ first-out (FIFO) method of costing has the advantage of simplicity. The FIFO method assumes that materials issued are taken from the oldest materials in stock. Therefore‚ the materials are costed at the prices paid for the oldest materials. In many companies‚ the flow of costs using FIFO closely parallels the physical flow of materials. For example‚ if materials have a tendency to deteriorate in storage
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Plagiarism Statement Declaration Form Semester : 2 Course Code and Title :ABFA 1023 FUNDAMENTALS OF ACCOUNTING Declaration We confirm that we have read and shall comply with all the terms and condition of TAR College’s plagiarism policy. We declare that this assignment is free from all forms of plagiarism and for all intents and purposes is our own properly derived work. We further confirm that the same work‚ where appropriate‚ has been verified by antiplagiarism Software ____________________________________
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CHAPTER 7 Inventory LEARNING OBJECTIVES 1. Identify what items and costs should be included in inventory and cost of goods sold. 2. Account for inventory purchases and sales using both a perpetual and a periodic inventory system. 3. Inventory is composed of goods held for sale in the normal course of business. Cost of goods sold is the cost of inventory sold during the period. For a manufacturing firm‚ the three types of inventory are raw materials‚ work in process‚ and
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C521 Exam 1 Name: | Imtiaz Ahmed | You have three hours to take and submit this exam. You must save this file using the following convention: LastnameFirstname (for example‚ my exam would be saved as SmithReed.docx). If you do not have the most current version of Word‚ that is OK. The file extension might be .doc instead. The document is protected (Tools menu) so that the data in the answer cells is type-restricted. You may unprotect the document in order to “paste” excerpts from Excel
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inventory of 6‚000 units on the basis of average cost method is $21‚300. b. First-in‚ first-out (FIFO): under FIFO the goods available for sale is sold first. The cost of goods sold of 7‚000 units is calculated as under: 5‚000 units will be valued at the rate of $3.23 and the remaining 2‚000 will be valued at the rate of $3.50 from the lot purchased on 16th September. The cost of goods sold under FIFO is $23‚150. The cost of ending inventory of 6‚000 units will be valued at the rate of purchases
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standards in Europe which demand ‘first-in first-out’ (FIFO) methodology for accounting inventory. Most US companies however produce based on ‘last-in first-out’ (LIFO) accounting. Shell’s current cost of supply (CCS)‚ however‚ are neither FIFO nor LIFO compliant. This means that Shell’s CCS figure are not recognized by US GAAP or IFRS. They are an industry measure only provided for in quarterly results for the benefit of investors. Instead of the FIFO method‚ Shell uses a weighted cost pricing methodology
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natural gas‚ and petroleum products. NOTES TO FINANCIAL STATEMENTS Inventories. Crude oil‚ products‚ and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in‚ first-out method – LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and indirectly incurred
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merchandise sold 2660 * Merchandise inventory 2660 Sales 3900 Cost of merchandise sold 2660 Gross profit 1240 Ending inventory 3220 Inventory system 1. Perpetua: record sales and cost of merchandise sold uses FIFO LIFO 2. Periodic: records sales only FIFO LIFO and average CMS=MAFS-EI * Perpetual inventory * a/r 200 * sales 200 * CMS 80 * Merchandise inventory 80 Periodic inventory only sales recorded when inventory is sold. CMS is determined
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