Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.1BE
Types of Manufacturing Inventory. Complete the following inventory disclosure: At the end of 2019 and 2018, inventories wore composed of:
2019 | 2018 | |
Raw materials and supplies | $2,206 | $ b. |
Goods in process | a. | 2,320 |
Finished goods | 3,566 | 3,490 |
Total inventories | $8,537 | $7,883 |
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The inventories of Berry Company for the years 2019 and 2020 are as follows:
Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000
Berry uses the periodic inventory method and the FIFO inventory cost flow assumption.
Required:
1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the:
a. direct method
b. allowance method
2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
Fischer, Inc. had the following inventory in fiscal 2019. The company uses the average cost method of accounting for inventory.
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Purchase of inventory, June 1, 2019: 200 units @ $12.00
Sale of inventory, November 1, 2019: 150 units
What amount is reported as cost of goods sold?
The table below is a summary of inventory for YZ company. Do a descriptive analysis on products in inventory with regards to minimum, maximum and average book value. Advise manager of YZ of the level of inventory at December 31, 2019.
Chapter 10 Solutions
Intermediate Accounting
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