Identifying a Loss in Applying Lower-of-Cost-or-Net Realizable Value Information related to three products of Adelle Corporation follows. Product A Product B Product C $18 $23 $25 14 18 16 2 3 5 2 Estimated selling price Original cost (FIFO) Cost of disposal Cost of completion a. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming each individual item is evaluated? Product A inventory value Product B inventory value Product C inventory value Total inventory value $ b. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming that the inventory in total is evaluated? Total inventory value $ Check 4 0 Previous Save Answers Next >

Identifying a Loss in Applying Lower-of-Cost-or-Net Realizable Value Information related to three products of Adelle Corporation follows. Product A Product B Product C $18 $23 $25 14 18 16 2 3 5 2 Estimated selling price Original cost (FIFO) Cost of disposal Cost of completion a. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming each individual item is evaluated? Product A inventory value Product B inventory value Product C inventory value Total inventory value $ b. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming that the inventory in total is evaluated? Total inventory value $ Check 4 0 Previous Save Answers Next >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4E: Inventory Write-Down The following information for Tuell Company is available: Required: 1. Assume...

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Effects of Inventory Costing Methods Refer to the information for Tyler Company above. Required: 1. Which inventory costing method produces the highest amount for net income? 2. Which inventory costing method produces the lowest amount for taxes? 3. Which inventory costing method produces the highest amount for ending inventory? 4. How would your answers to Requirements 1-3 change if inventory prices declined during the period?
Accruing net losses on obsolete inventory is an example of the accounting concept of: a. conservatism b. historical cost c. consistency d. materiality
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
25. which of the following will not be deducted to compute the consolidated cost of goods sold? A. Intercompany sale of inventory B. Amortization of undervalued inventory C. Realized profit in ending inventory – downstream D. Realized gross in beginning inventory - upstream
When is ending inventory written down below its acquisition cost on the balance sheet? Select one: A. When units are damaged, physically deteriorated, or obsolete B. When the inventory's replacement cost exceeds its acquisition cost C. When the inventory's replacement cost is below its acquisition cost D. Both A and C
Which method results in a balance sheet valuation of inventory method farthest away from its economic value? Select one: a. FIFO b. LIFO c. Weighted Average PreviousSave AnswersNext
The taxable income of Jenny for first week of January 2021 was R3 220. She did not earn overtime pay or any other remuneration. Her weekly pension deduction was R280. Her other deductions amounted to R800. Which one of the following statements is true? Select one: O A. Her contribution to the pension fund was 8% of her normal pay. O B. Her net wage was R2 140. O C. Her gross wage was R4 300. D. Her gross wage for January 2021 was higher than her basic wage.
Which inventory costing method results in the lowest net income during a period of rising inventory costs? a. Weighted-average b. Specific identification c. First-in, first-out (FIFO) d. Last-in, first-out (LIFO)
The cost of purchase of inventory does not include:A. Freight handling and other cost directly attributable to the acquisition of goods B. Import duties and recoverable taxes C. None of the choices D. Purchase price Which of the follow inventory method reports most closely the current cost of inventory?A. Identification B. Weighted average C. Lifo D. Fifo