An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business. The reason for disclosing the FIFO cost of LIFO inventory.

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Answer 1

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Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

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In 2016, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2015, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated that the inventories would have totaled $64 million at December 31, 2015, if determined on a FIFO basis. Ignoring income taxes, what journal entry will Adonis use to record the adjustment in 2016?

In March 2015, XYZ Corp. purchased an item of inventory for $30. By June, that item could be purchased for $26 and re-sold for $31. XYZ's normal profit for the item is $4. At what amount should XYZ report the item in its June 30 balance sheet? XYZ uses the LIFO inventory cost flow assumption. (omit , and $ in the answer) 30

Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. FIFO Average-Cost 2017 $26,000 $23,000 2018 30,000 25,000 2019 29,000 27,000 2020 34,000 30,000 (ignore tax considerations) Required: a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020. b. Assume that in 2020 New Girl, which had been using the average-cost method since beginning operations in 2017, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2020, and show net income reported for 2017, 2018, 2019, and 2020.

Answer 2

Question

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

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Answer 3

Question

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

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Answer 4

Question

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

Answer 6

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

Answer 7

Chapter 8, Problem 8.8DMP

1.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for disclosing the FIFO cost of LIFO inventory.

Answer 8

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

Answer 9

2.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of beginning and ending inventory for the year ended December 30, 2017.

Answer 10

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

Answer 11

3.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The amount of cost of goods sold and gross profit for the year ended December 30, 2017.

Answer 12

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

Answer 13

4.

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

The reason for separate disclosure of LIFO liquidations due to decline in the quantity of ending inventory.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6Q Ch. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8Q Ch. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...

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