Abtos company is a U.S. Manufacturer that is publicly traded. Abtos reports $12 million of Inventory on its balance sheet. Inventory includes raw materials, work in process and finished goods. Is Abtos required to disclose the amounts for each class of inventory, or can it simply report the total $ 12 million balance on its balance sheet? Provide Codification references to support your answer to this question. please prepare a memorandum to address the above issue.
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- 1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + L a. Asset; +40 000 = Equity; nil + Liability; nil. Asset; -40 000 b. Asset; +40 000 = Equity; nil + Liability; nil. Asset; +40 000 c. Asset; -40 000 = Equity; -40 000 + Liability; nil d. Asset; +40 000 = Equity; nil + Liability; +40 000 e. Asset; nil = Equity; -40 000 + Liability; +40 000 2. Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s…Consider each of the following independent situations. Should a company report the goods in its inventory? (a) Goods purchased by the company with shipping terms FOB shipping point that are in transit at the end of the year (b) Goods received by the company on consignment (c) An estimate of the amount of goods sold by the company that it expects the buyer to return (d) Goods required to be purchased by the company under an unconditional purchase obligationCPAinTransit Company has the following balances: Accounts Payable: January 1, 2021 P265,432 ; December 31, 2021 838,923 ; Inventory balance: January 1, 2021 824,687 ; December 31, 2021 453,624 ; Cost of Goods Sold – 2021 1,924,6508. Determine the amount CPAinTransit paid to its suppliers in 2021 * a. 819,019 b. 1,553,587 c. 2,127,078 d. 980,096
- The ABC sole proprietorship deals with the trade of IT items and the provision of related services. Carry out the adjustment entries of the accounts for the fiscal year 20X6 as well as those for the determination of the gross profit taking into account the following information: For the accounting of inventories, the company applies a periodic inventory and evaluates the inventories using the weighted average cost method. The company trades the kind P. The initial inventory consists of 20 units with a purchase price of € 50 per unit. In the fiscal year, 20X6 bought 80 units for € 55 per unit and 80 units for € 60 per unit. In the inventory of 31/12/20X6, the stocks in the warehouse consist of 30 units whose liquidation price amounts to € 55 per unit. Total gross merchandise sales amounted to €45,000 and sales returns to €400. During the 20x6 fiscal year, the company had purchased $1,000 at a $200 exchange rate= € 1. On 31/12/20X6, the current USD exchange rate is $1 =€ 1.2. The…AnsgarPharm is an American drug wholesale company. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following information was included in a recent annual report: Inventories are comprised of the following ($ in millions): September 30, 2019 September 30, 2018 $ 13,428 (1,530) $ 11,898 $ 26,856 (1,702) $ 25,154 Inventories (under FIFO) Less: LIFO reserve Inventories (under LIFO) The company's income statements reported cost $149,098 million for the year ended September 30, 2019. Required: 1. Prepare the September 30, 2019, adjusting entry to record the cost of goods sold adjustment. 2. If AnsgarPharm had used FIFO to report its inventories, what would cost of goods sold have been for the year ended September 30, 2019? Complete this question by entering your answers i Required 1 Required 2 Prepare the September 30, 2019, adjusting entry to reco sold adjustment. Note: If no entry is required for a transaction/event, sele…WaterCo, a U.S. corporation, purchases inventory for resale from unrelated distributors outside the U.S. It resells this inventory to U.S. customers with title passing inside the United States. What is the sourcing of WaterCo's inventory sales income? a.50% U.S. source and 50% foreign source. b.100% foreign source. c.50% foreign source and 50% sourced based on location of manufacturing assets. d.100% U.S. source.
- Peete Company identifies the following items for possible inclusion in the physical inventory.Indicate whether each item should be included or excluded from the inventory taking. (a) 900 units of inventory shipped on consignment by Peete to another company. Select between included or excluded from the inventory taking IncludedExcluded (b) 3,000 units of inventory in transit from a supplier shipped FOB destination. Select between included or excluded from the inventory taking ExcludedIncluded (c) 1,200 units of inventory sold but being held for customer pickup. Select between included or excluded from the inventory taking IncludedExcluded (d) 500 units of inventory held on consignment from another company.Peosta Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. (a) Goods shipped on consignment by Peosta to another company. (b) Goods in transit from a supplier shipped FOB destination. (c) Goods held on consignment from another company.You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the goods received in December, 2022 at a cost of P 50,000 were recorded as purchases when paid in 2023. The goods were excluded from the 2022 ending inventory. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at th end of year 2022 as a result of the error? , is(are) understated by P 50,000 at the | Select ] Select a. Purchases only b. Purchases and Inventory, December 31, 2022 c. Retained Earnings only d. Inventory , December 31. 2022 only Question 2: Which of the following accounts is(are) not affected by the error at the end of year 2022? [ Select] of the following accounts is(are) [ Select] a. Accounts Payable b. Retained Earnings c. Inventory, December 31, 2022 d. Purchases Question 3: Which…
- The Marigold Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory account, which is debited for materials purchased and credited for materials requisitioned for use. 1. An invoice for $8,700, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that the materials were received on December 28, 2020. Materials costing $8,000 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns were entered into Marigold's general ledger on December 28, even though the returned items did not arrive at the vendor's office until January 6, 2021. 2. Materials costing $28,700, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a railroad car on the company's siding on that date and had not…Company A uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The following information is available for 2025 and 2024 : 12//31//2025 12//31//2024 FIFO Inventory $182,000 $187,000 LIFO Inventory $174,000 $176,000 What is the appropriate journal entry at 12//31//2025 to adjust the account balances from FIFO-based to LIFO-based amounts? LIFO Reserve 8,000 8,000 Cost of Goods Sold LIFO Reserve 3,000 3,000 Cost of Goods Sold 3,00 Cost of Goods Sold 8,000 LIFO Reserve 8,000 Cost of Goods Sold 3,000 LIFO Reserve 3,0001. Assume that Island Solutions applies LCNRV at the individual product level to determine the value of inventory that should be reported on the statement of financial position on September 30, 2023. 2. Assume Island Solutions applies LCNRV at the major group level and, for this purpose, places TA3 and TB3 Hubs in one major group, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
