In May 2017, o parent sola inventories to a subsiaiary entity for $60 000. The inventories nao previoUsty cost the parent entity $43 000. Tne entire inventory is still held by the subsiaiary at reporting ate, 30 June 2017. ignoring tax effects, wnich of the following is the oojustment entry in the consolidation worKsheet at reporting aate?
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- Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.LIFO and Inventory Pools On January 1, 2016, Grover Company changed its inventory cost flow method to the LIFO cost method from the FIFO cost method for its raw materials inventory. It made the change for both financial statement and income tax reporting purposes. Grover uses the multiple-pools approach under which it groups substantially identical raw materials into LIFO inventory pools. It uses weighted average costs in valuing annual incremental layers. The composition of the December 31, 2018, inventory for the Class F inventory pool is as follows: Inventory transactions for the Class F inventory pool during 2019 were as follows: On March 2, 2019, 4,800 units were purchased at a unit cost of 13.50 for 64,800. On September 1, 2019, 7,200 units were purchased at a unit cost of 14.00 for 100,800. A total of 15,000 units were used for production during 2019. The following transactions for the Class F inventory pool took place during 2020: On January 11, 2020, 7,500 units were purchased at a unit cost of 14.50 for 108,750. On May 14, 2020, 5,500 units were purchased at a unit cost of 15.50 for 85,250. On December 29, 2020, 7,000 units were purchased at a unit cost of 16.00 for 112,000. A total of 16,000 units were used for production during 2020. Required: 1. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2019. Show supporting computations in good form. 2. Prepare a schedule to compute the cost of Class F raw materials used in production for the year ended December 31, 2019. 3. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2020. Show supporting computations in good form.
- Kraft Manufacturing Company manufactures two products: Mult and Tran. At December 31, 2019, Kraft used the FIFO inventory method. Effective January 1, 2020, Kraft changed to the LIFO inventory method. The cumulative effect of this change is not determinable, and, as a result, the ending inventory of 2019, for which the FIFO method was used, is also the beginning inventory for 2020 for the LIFO method. Any layers added during 2020 should be costed by reference to the first acquisitions of 2020, and any layers liquidated during 2020 should be considered a permanent liquidation. The following information was available from Krafts inventory records for the two most recent years: Required: Compute the effect on income before income taxes for the year ended December 31, 2020, resulting from the change from the FIFO to the LIFO inventory method.During 2022, Bamboo Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change?A. 1,000,000 additionB. 1,000,000 deductionC. 600,000 additionD. 600,000 deductionIn 2018, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. AtDecember 31, 2017, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to determine whatinventories would have totaled if determined on a LIFO cost basis. Briefly describe the steps J J should take toreport the change.
- During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change? (A) 1,000,000 deduction (B) 1,000,000 addition C 600,000 deduction D 600,000 additionIf P acquired 90% of the outstanding common stock of S company. During 2015, P Company sells merchandise amounted 1800000 to S Company at 20% above cost. S Company had in its inventory half of the amount of goods purchased from P during 2015. If P company uses cost method, what eliminating entry will be recorded by P in 2016 to eliminate the Unrealized Profit in Inventory related to 2015? Select one: a. DR. Cost of goods sold 150000 CR. Inventory (ending) 150000 b. DR. Retained earnings 1/1 900000 CR. Inventory (ending) 900000 c. DR. Retained earnings 1/1 135000, NCI 15000 CR. Cost of goods sold 150000 d. DR. Retained earnings 1/1 150000 CR. Cost of goods sold 150000 e. DR. Retained earnings 1/1 810000, NCI 90000 CR. Cost of goods sold 900000i need help for homework PAR sold inventory with a cost of $70,000 to its 90%-owned subsidiary, SUB, for $100,000 in 2016. SUB resold $80,000 of this inventory for $120,000 in 2016. Based on this information, the amount of inventory reported on the consolidated financial statements at the end of 2016 is: a. $40,000. b. $6,000. c. $20,000. d. $14,000.
- On January 1, 2023 , Linda Corp. changed from the average cost to the dollar value LIFO method for accounting for inventory. The change results in a decrease in ending inventory of $45,497,000 for the year. How should the effect of this change be reported by Linda Corp. in 2023? (RE& CF 1) As an increase to beginning RE of $ 45,497,000 As a decrease to beginning RE of $45,497,000 As an increase to net income of $45,497,000 As a decrease to net income of $45,497,000ts Fog Gear Incorporated changed from LIFO to the FIFO inventory costing method on January 1, 2024. Inventory values at the end of each year since the inception of the company are as follows: 2022 2023 FIFO $ 192,000 384,000 LIFO $ 176,000 352,000 Required: Ignoring income tax considerations, prepare the journal entry for Fog Gear to report this accounting change. Edit View Insert Format Tools TableIn 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of2017 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2018 is$162,000 using the new FIFO method but would have been $151,000 if the company had continued to useLIFO. Describe the steps Hopyard should take to report this change. What is the effect of the change on 2018cost of goods sold?