EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781305727557
Author: PAGACH
Publisher: YUZU
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Chapter 22, Problem 6P
To determine
Ascertain the cumulative effect of the retrospective adjustment, resulting change from the change from the FIFO to LIFO inventory method, on Company KM’s income before income taxes for the year ended December 31, 2017.
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Telamark Company uses the moving weighted average method for Inventory costing.
Required:
The following Incomplete inventory sheet regarding Product W506 is avallable for the month of March 2020. Complete the Inventory
sheet. (Use the value of the ending Inventory as your bese number and adjust the COGS $ amount to the requlred amount to
make the Total Goods Avallable for Sale to the total of the Velue of the ending Inventory and the COGS total. Negative value
should be Indicated with minus sign. Round your Intermediate and final answers to 2 decimal places.)
Purchases/Transportation-In/
(PurchaseReturns/Discounts)
Cost of Goods Sold/(Returns to
Inventory)
Balance in Inventory
Units
Avg
Cost/Unit
Date
Units
Cost/Unit
Total $
Units Cost/Unit
Total $
Total $
Mar. 1
Brought Forward
60
94.00
5,640.00
2
35
98.00
3
22
4
(2)
7
65
17
40
97.00
28
43
Totals
Goods Available for Sale
Goods Sold
Ending Inventory
Telamark Company uses the moving weighted average method for inventory costing.
Required:
The following incomplete inventory sheet regarding Product W506 is available for the month of March 2020. Complete the inventory
sheet. (Use the value of the ending inventory as your base number and adjust the COGS S amount to the required amount to
make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value
should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.)
Date Units
Mar 1
12
3
4
7
17
28
Totals
Purchases/Transportation-In/
(PurchaseReturns/Discounts)
32
27 S
Cost/Unit
Brought Forward
96.00
97.00
Goods Available for Sale
Total $
Cost of Goods Sold (Returns to
Inventory)
Units
40
(20)
47
35
Cost/Unit
Goods Sold
Total S
Units
52 $
Balance in Inventory
Avg
Cost/Unit
94.00 S
Ending Inventory
Total $
4,888 00
Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2016. Webster continues to use the FIFO method for internal decision-making purposes. Webster’s FIFO inventories at December 31, 2016, 2017, and 2018, were $300,000, $412,500, and $585,000, respectively. Internally generated cost indexes are used to convert FIFO inventory amounts to dollarvalue LIFO amounts. Webster estimated these indexes as follows: 2016 1.00 2017 1.25 2018 1.50 Required: 1. Determine Webster’s dollar-value LIFO inventory at December 31, 2017 and 2018. 2. Describe how the change should have been reported in Webster’s 2016 financial statements.
Chapter 22 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
Ch. 22 - Prob. 1GICh. 22 - Prob. 2GICh. 22 - Prob. 3GICh. 22 - What steps are necessary to apply the...Ch. 22 - Prob. 5GICh. 22 - Prob. 6GICh. 22 - Prob. 7GICh. 22 - Prob. 8GICh. 22 - Define a change in estimate. What is the proper...Ch. 22 - Prob. 10GI
Ch. 22 - How is a change in depreciation method accounted...Ch. 22 - Describe a change in a reporting entity. How does...Ch. 22 - Prob. 13GICh. 22 - Prob. 14GICh. 22 - Prob. 15GICh. 22 - Prob. 16GICh. 22 - Prob. 17GICh. 22 - Prob. 18GICh. 22 - Prob. 19GICh. 22 - Prob. 20GICh. 22 - The cumulative effect of an accounting change...Ch. 22 - When a change in accounting principle is made...Ch. 22 - Prob. 3MCCh. 22 - A change in the expected service life of an asset...Ch. 22 - Prob. 5MCCh. 22 - Generally, how should a change in accounting...Ch. 22 - Prob. 7MCCh. 22 - A company has included in its consolidated...Ch. 22 - Prob. 9MCCh. 22 - Prob. 10MCCh. 22 - Prob. 1RECh. 22 - Prob. 2RECh. 22 - Prob. 3RECh. 22 - Prob. 4RECh. 22 - Bloom Company had beginning unadjusted retained...Ch. 22 - Suppose that Blake Companys total pretax...Ch. 22 - Bliss Company owns an asset with an estimated life...Ch. 22 - At the end of 2016, Framber Company received 8,000...Ch. 22 - Prob. 9RECh. 22 - Prob. 10RECh. 22 - Prob. 11RECh. 22 - Prob. 12RECh. 22 - The following are independent events: a. Changed...Ch. 22 - Prob. 2ECh. 22 - The following are independent events: a. A...Ch. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - The following are independent errors made by a...Ch. 22 - The following are independent errors made by a...Ch. 22 - Refer to the information in E22-13. Required:...Ch. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 1PCh. 22 - Prob. 2PCh. 22 - Prob. 3PCh. 22 - Prob. 4PCh. 22 - Prob. 5PCh. 22 - Prob. 6PCh. 22 - Prob. 7PCh. 22 - At the beginning of 2017, Holden Companys...Ch. 22 - Prob. 9PCh. 22 - Prob. 10PCh. 22 - Prob. 11PCh. 22 - Prob. 12PCh. 22 - Prob. 13PCh. 22 - Prob. 14PCh. 22 - There are three types of accounting changes:...Ch. 22 - Prob. 2CCh. 22 - Prob. 3CCh. 22 - When the FASB issues a new generally accepted...Ch. 22 - It is important in accounting theory to be able to...Ch. 22 - Prob. 6CCh. 22 - Prob. 7CCh. 22 - Prob. 8CCh. 22 - Prob. 9CCh. 22 - Prob. 10C
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