On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. Atthat date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $224,000. The followinginformation is available from Benn's records for Year 5 through Year 8.Year Ending Inventory on a FIFO Basis Price IndexYear 5Year 6Year 7$264,0001.1278,4001.2322,4001.3320,0001.2Year 8RequiredCompute the ending inventory on a dollar-value LIFO basis for Year 5, Year 6, Year 7, and Year 8.Note: Do not round until your final answer. Round your final answer to the nearest whole dollarDollar-value LIFO ending inventory, Year 5 $224,000 XDollar-value LIFO ending inventory, Year 6$232,000 XDollar-value LIFO ending inventory, Year 7$247,962 XDollar-value LIFO ending inventory, Year 8 $266,667 x

Inventory Valuation: Inventory Valuation Inventory DVL costYear 5$241,600Year 6$232,800Year…

Answered: On January 1 of Year 5, Benn Company…

College Accounting, Chapters 1-27

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Chapter13: Accounting For Merchandise Inventory

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Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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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.
On December 31, Pitts Manufacturing Company reports the following assets: What is the total amount of Pitts inventory at year-end?
The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
Inventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)
On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $84,000. The following information is available from Benn’s records for Year 5 through Year 8. Year Ending Inventory on a FIFO Basis Price Index Year 5 $99,000 1.1 Year 6 104,400 1.2 Year 7 120,900 1.3 Year 8 120,000 1.2 Required Compute the ending inventory on a dollar-value LIFO basis for Year 5, Year.
am 111.
On January 1, 2020, Crow Company changed from FIFO to LIFO for income tax and external reporting purpos- es. On that same date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $95,000. The following information is available from Crow's records for years 2020 through 2023. Year 2020 2021 2022 2023 Ending Inventory on a FIFO Basis Ending Inventory at Base Year Costs $113,600 84,600 85,200 92,900 a. $125,000 110,000 115,000 130,000 Required Compute the price indices used to calculate ending inventory at base year costs. Round to two decimals. Hint: Divide ending inventory on a FIFO basis by ending inventory at base year for each year. b. Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023. Prepare the journal entry at each year-end, 2020 through 2023, to adjust inventory to LIFO.
b. Prepare the December 31 year-end journal entry for Year 5 Year 6, and Year 7, to convert inventory from FIFO to LIFO. Ohio Inc. maintains its internal inventory records on a FIFO basis. On January 1 of Year 5, Ohio changed to dollar-value LIFO for external reporting and income tax purposes. The following data are available for Ohio Inc.'s inventory. Its base inventory is $200,000. Ending inventory at current-year cost... LIFO price index.. Year 5 $280,000 1.20 Year 6 $320,000 1.30 Year 7 $350,000 1.45 Required a. Compute its ending inventory on a dollar-value LIFO basis for Year 5 Year 6, and Year 7. b. Assume that its Year 8 ending inventory on a dollar-value LIFO basis is $288,390 and its Year 8 LIFO price index is 1.50. What is its Year 8 ending inventory on a current cost basis?
On January 1, 2018, Toups Inc. changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory was $75,000. See the following information from Toups's records. Ending Inventory at FIFO $ 75,000 88,000 100,000 Year Index 2018 2019 1.00 1.10 2020 1.15 2021 2022 75,000 88,000 1.20 1.25 3e. Write the necessary adjusting entries to adjust the LIFO Reserve for each year.
Massi pharmacies, Inc. started operations on January 1 2X11. The company used the average cost method t=o value inventory. Effective January 1 2X15, Massi elected to change its inventory method to the FIFO basis for reporting purposes. The following information is available for net income for average cost and for FIFO, Year ended Net Income Using Average cost Net Income Using FIFO After Tax Difference After Tax Cumulative Effect December 31, 2X11 $235,000 $310,000 $75,000 $75,000 December 31, 2X12 $300,000 $376,000 $76,000 $151,000 December 31, 2X13 $310,000 $400,500 $90,500 $241,000 December 31, 2X14 $425,000 $535,000 $109,500 $351,000 December 31, 2X15 $500,000 $585,000 $85,000

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