AC210 EXAM 1 EEACH MULTIPLE QUESTION IS 5 POINTS PROBLEM IS 50 POINTS TOTAL POINTS=100 YOUR NAME___________Tyler Gaassett________________ Multiple Choice Questions *Highlight Your Answer Chapter 6 1-30. Operating income is: A. A measure of profitability after deducting cost of sales from net sales. B. A measure of profitability after deducting cost of sales and all expenses incurred in operating the business from net sales. C. A measure of liquidity after deducting cost
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sold……………………………….. 90‚000 Gross profit………………………………………… $60‚000 (15-20 min.) S 6-3 a b c Average Cost FIFO LIFO Cost of goods sold: Average (26 × $154.71) $4‚022.46 FIFO $1‚260 + (17 × $160) $3‚980 LIFO $4‚000 + (1 × $140) $4‚140 Ending inventory: Average (8 × $154.71) $ 1‚237.68 FIFO (8 × $160) $1‚280 LIFO (8 × $140) $1‚120 Computations: Units sold = 26 (9 + 25 − 8) Units in ending inventory = 8 Average cost
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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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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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from LIFO TO FIFO it might be possible to maintain earning growth in 2008. He prepaid a memo to president explain how inventory flow assumption work and provides per forma income statement that show for one product adopting FIFO would allow Merrimack to report higher income in 2008 than it did in 2007 but higher income taxes would have to be paid. First Objective: The first objective in this case is to exposed students to different methods of inventory valuation. Students must know about LIFO and
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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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6725 = 25.57% In answering the following questions‚ please refer to the financial statements of Caterpillar Inc. (CAT) and the relevant Notes to these statements at the end of this write-up. 1. What could be the cause(s) for the shift in LIFO-based inventory from 70% at December 31‚ 2010 to 65% at December 31‚ 2011? A decrease in the replacement cost for Cat’s inventories‚ or an increase in the obsolescence of Cat’s older inventories could cause a decrease in the reported total value
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cost of goods sold from 1/1 through 2/21 under the FIFO cost flow assumption. 2. Compute ending inventory at 2/21 under the FIFO cost flow assumption. 3. Compute cost of goods sold from 1/1 through 2/21 under the LIFO cost flow assumption. 4. Compute ending inventory at 2/21 under the LIFO cost flow assumption. 5. Compute cost of goods sold from 1/1 through 2/21 under the weighted average cost flow assumption. 6. Compute ending inventory at 2/21 under the weighted average cost flow assumption. 7. Compute
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1‚ 2‚ 3 Concepts for Analysis 1‚ 2‚ 3‚ 5‚ 11 2. 3. 4. 5. 2 9‚ 13‚ 14‚ 17 7‚ 8 2‚ 3‚ 4‚ 5‚ 10‚ 11‚ 12 13‚ 14‚ 15‚ 16‚ 17‚ 18‚ 19‚ 20‚ 21‚ 22 18 4‚ 5‚ 6 3 2 1‚ 4‚ 5‚ 6‚ 7 5‚ 6‚ 7‚ 8 4 6. 7. Inventory accounting changes. Dollar-value LIFO methods. 14‚ 15‚ 17‚ 18‚ 19 8‚ 9 7 1‚ 8‚ 9‚ 10‚ 11 6‚ 7‚ 10 8‚ 9 23‚ 24‚ 25‚ 26 8-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Identify major classifications of inventory. Distinguish
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