文本文稿分析08章

000VALUATIONOFINVENTORIES:ACOST-BASISAPPROACHTFFFTTFTFTTFFTTFFTFTcbbacadbbcdba8- MULTIPLECHOICE—Conceptualddabcbbdbaadbcddabdbdaacadbababababcddcbcadcdda8-MULTIPLECHOICE—Conceptualadcccdddcbcdaadddbdbdaacdbcbcbadcddcccbbc8- MULTIPLECHOICE—ComputationalbcbccabbdacMULTIPLECHOICE—CPAdacdbdabccaccab

ComparisonofFIFOandLIFO. FIFOandLIFOperiodicinventorymethods. PerpetualLIFO. Analysisofgrossprofit. 8-Inventorycut-off.Inventorymethods.CHAPTERLEARNINGDistinguishbetweenperpetualandperiodicinventorysystems.Understandtheitemstoincludeasinventorycost.ExplainthesignificanceanduseofaLIFOreserve.Explainthedollar-valueLIFOmethod.8- SUMMARYOFLEARNINGOBJECTIVESBY 21.22.23.84.85.37.S38.P39. P40.S41. S59.95.137.140.141. P60.116. 75.76.117.118. 77.119.120. S80. S81.82.83. E=ExerciseP= -7TRUEFALSE—inthebalancesheet.BothmerchandisingandmanufacturingcompaniesnormallyhavemultipleinventorytoFreight-In.Ifasuppliershipsgoodsf.o.b.destination,titlepassestothebuyerwhenthesupplierdeliversthegoodstothecommoncarrier.Ifbothpurchasesandendinginventoryareoverstatedbythesameamount,netincomeisnotaffected.Freightchargesongoodspurchasedareconsideredaperiodcostandthereforearenotpartofthecostoftheinventory.PurchaseDiscountsLostisafinancialexpenseandisreportedinthe“otherexpensesandlosses”sectionoftheincomestatement.ThecostflowassumptionadoptedmustbeconsistentwiththephysicalmovementoftheInallcaseswhenFIFOisused,thecostofgoodssoldwouldbethesamewhetheraperpetualorperiodicsystemisused.ThechangeintheLIFOReservefromoneperiodtothenextisrecordedasanadjustmenttoCostofGoodsSold.Thedollar-valueLIFOmethodmeasuresanyincreasesanddecreasesinapoolintermsoftotaldollarvalueandphysicalquantityofthegoods.aswellasFIFO.TheLIFOconformityrulerequiresthatifacompanyusesLIFOfortaxpurposes,itmustalsouseLIFOforfinancialaccountingpurposes.8- UseofLIFOprovidesataxbenefitinanindustrywhereunitcoststendtodecreaseasproductionincreases.TrueFalseAnswers—TTTFFFFFFTFTFFTFTTTTWhichofthefollowinginventoriescarriedbyamanufacturerissimilartothemerchandiseinventoryofaretailer?Costofgoodssoldisdeterminedastheamountofpurchaseslessthechangein -9Whereshouldgoodsintransitthatwererecentlypurchasedf.o.b.destinationbeincludedonthebalancesheet?Ifacompanyusestheperiodicinventorysystem,whatistheimpactonnetincomeofincludinggoodsintransitf.o.b.shippingpointinpurchases,butnotendinginventory?NoeffectonnetIfacompanyusestheperiodicinventorysystem,whatistheimpactonthecurrentratioofincludinggoodsintransitf.o.b.shippingpointinpurchases,butnotendinginventory?Noeffectonthecurrentallofnoneofnoneof8- Whichofthefollowingitemsshouldbeincludedinacompany'sinventoryatthebalancesheetdate?GoodssoldtoacustomerwhicharebeingheldforthecustomertocallforathisorherNoneofDuring2012CarneCorporationtransferredinventorytoNolanCorporationandagreedtorepurchasethemerchandiseearlyin2013.NolanthenusedtheinventoryascollateraltoborrowfromNorwalkBank,remittingtheproceedstoCarne.In2013whenCarnerepurchasedtheinventory,Nolanusedtheproceedstorepayitsbankloan.sheetdate?allof TheaccountantforthePryorSalesCompanyispreparingtheincomestatementfor2012andthebalancesheetatDecember31,2012.Pryorusestheperiodicinventorysystem.asadeductioninthecostofgoodssoldsectionoftheincomestatementandasacurrentassetonthebalancesheet.assetonthebalancesheet. -11 Ifthebeginninginventoryfor2012isoverstated,theeffectsofthiserroroncostofgoodssoldfor2012,netincomefor2012,andassetsatDecember31,2013,respectively,are ThefailuretorecordapurchaseofmerchandiseonaccounteventhoughthegoodsareproperlyincludedinthephysicalinventoryresultsinDolanCo.receivedmerchandiseonconsignment.AsofMarch31,Dolanhadrecordedthetransactionasapurchaseandincludedthegoodsininventory.TheeffectofthisonitsfinancialstatementsforMarch31wouldbenoGreenCo.receivedmerchandiseonconsignment.AsofJanuary31,Greenincludedthegoodsininventory,butdidnotrecordthetransaction.TheeffectofthisonitsfinancialstatementsforJanuary31wouldbeFeineCo.accepteddeliveryofmerchandisewhichitpurchasedonaccount.AsofDecember31,Feinehadrecordedthetransaction,butdidnotincludethemerchandiseinitsinventory.TheeffectofthisonitsfinancialstatementsforDecember31wouldbeOnJune15,2012,WynneCorporationaccepteddeliveryofmerchandisewhichitpur-chasedonaccount.AsofJune30,Wynnehadnotrecordedthetransactionorincludedthemerchandiseinitsinventory.TheeffectofthisonitsbalancesheetforJune30,2012wouldnoneof8- Whatistheeffectofa$50,000overstatementoflastyear'sinventoryoncurrentyearsendingretainedearningbalance?NoWhichmethodmaybeusedtorecordcashdiscountsacompanyreceivesforpayingsupplierspromptly?NetaandAllofAllofthefollowingcostsshouldbechargedagainstrevenueintheperiodinwhichcostsareincurredexceptformanufacturingoverheadcostsforaproductmanufacturedandsoldinthesameaccountingperiod. -13Whichofthefollowingtypesofinterestcostincurredinconnectionwiththepurchaseormanufactureofinventoryshouldbecapitalizedasaproductcost?InterestincurredduringtheproductionofdiscreteprojectssuchasshipsorrealestateInterestincurredonnotespayabletovendorsforroutinepurchasesmadeonarepetitivebasisitemisitsTheuseofaPurchaseDiscountsaccountimpliesthattherecordedcostofapurchasedinventoryitemisitsof$985,000beforecashdiscounts.Allpurchasesweremadeontermsof2/10,n/30.Three-fourthsoftheitemspurchasedwerepaidforwithin10daysofpurchase.Allofthegoodsavailablehadbeensoldatyearend.Whichofthefollowingrecordingprocedureswouldresultinthehighestcostofgoodssoldfor2012?Recordingpurchasesatnetamounts,withtheamountofdiscountsnottakenshownunder"otherexpenses"intheincomestatement12Either1or2willresultinthesamecostofgoodsRecordingpurchasesatnetamounts,withtheamountofdiscountsnottakenshownunder"otherexpenses"intheincomestatement12Either1or2willresultinthesamenet8- Whenusingtheperiodicinventorysystem,whichofthefollowinggenerallywouldnotbeseparatelyaccountedforinthecomputationofcostofgoodssold? coststhataredirectlyconnectedwiththebringingofgoodstotheplaceofbusinessofthebuyer.设置了格式:设置了格式: Whichinventorycostingmethodmostcloselyapproximatescurrentcostfor设置了格式:设置了格式: sheetvaluationsimilartothefirst-in,first-outmethodisThepricingofissuesfrominventorymustbedeferreduntiltheendoftheaccountingperiodunderthefollowingmethodofinventoryvaluation:AninventorypricingprocedureinwhichtheoldestcostsincurredrarelyhaveaneffectontheendinginventoryvaluationisWhichmethodofinventorypricingbestapproximatesspecificidentificationoftheactualflowofcostsandunitsinmostmanufacturingsituations? -15Assumingnobeginninginventory,whatcanbesaidaboutthetrendofinventorypricesfofgoodssoldwheninventoryisvaluedusingtheLIFOmethod?Inaperiodofrisingprices,theinventorymethodwhichtendstogivethehighestreportednetincomeisInaperiodofrisingprices,theinventorymethodwhichtendstogivethehighestreportedinventoryisTannerCorporation'sinventorycostonitsbalancesheetwaslowerusingfirst-in,first-outthanitwouldhavebeenusinglast-in,first-out.Assumingnobeginninginventory,inwhatdirectiondidthecostofpurchasesmoveduringtheperiod?Inaperiodofrisingprices,theinventorymethodwhichtendstogivethehighestreportedcostofgoodssoldisnoneofIfinventoryquantitiesaretobemaintained,partoftheearningsmustbeinvested(plowedback)ininventorieswhenFIFOisusedduringaperiodofrisingprices.LIFOtendstosmoothoutthenetincomepatternbymatchingcurrentcostofgoodssoldwithcurrentrevenue,wheninventoriesremainatconstantquantities.stockonhandbelowcustomarylevels),theremaybeamatchingofoldcostswithcurrentrevenue.TheuseofFIFOpermitssomecontrolbymanagementovertheamountofnetincomeforaperiodthroughcontrolledpurchases,whichisnottruewithLIFO.8- Theacquisitioncostofacertainrawmaterialchangesfrequently.Thebookvalueoftheinventoryofthismaterialatyearendwillbethesameifperpetualrecordsarekeptasitwouldbeunderaperiodicinventorymethodonlyifthebookvalueiscomputedundertheidealforassigningcoststoinventoryandcostofgoodssold?AbletouseonalltypesofInaperiodofrisingpriceswhichinventorymethodgenerallyprovidesthegreatestamountofnetincome?ofnetincome?WhatisaLIFOThedifferencebetweentheLIFOinventoryandtheamountusedforinternalreportingWhenacompanyusesLIFOforexternalreportingpurposesandFIFOforinternalreportingpurposes,anAllowancetoReduceInventorytoLIFOaccountisused.Thisaccountshouldbereported -17AlloftheThedifferencebetweentheLIFOinventoryandtheamountusedforinternalreporting Whichofthefollowingstatementsisnottrueasitrelatestothedollar-valueLIFOinventoryItiseasiertoerodeLIFOlayersusingdollar-valueLIFOtechniquesthanitiswithspecificgoodspooledLIFO.Underthedollar-valueLIFOmethod,itispossibletohavetheentireinventoryinonlyonepool.Underdollar-valueLIFO,increasesanddecreasesinapoolaredeterminedandmeasuredintermsoftotaldollarvalue,notphysicalquantity. Acompany'sfuturereportedearningswillnotbeaffectedsubstantiallybyfuturepriceIfLIFOisusedforexternalfinancialreporting,thenitmustalsobeusedforinternalForpurposesofexternalfinancialreporting,LIFOmaynotbeusedwiththelowerofcostormarketapproach.NoneofIfinventorylevelsarestableorincreasing,anargumentwhichisnotanadvantageoftheLIFOmethodascomparedtoFIFOiscostofgoodssoldtendstobestatedatapproximatelycurrentcostontheincome8- MultipleChoiceAnswers—ccbdcbabdbdaadbbdadbcaabbbcdcdadaddadabbdadaddacabbbabbdbccaacc $$ -19ElkinsCorporationusestheperpetualinventorymethod.OnMarch1,itpurchased$20,000ofinventory,terms2/10,n/30.OnMarch3,Ekinsreturnedgoodsthatcost$2,000.OnMarch9,Elkinspaidthesupplier.OnMarch9,Elkinsshouldcreditinventoryfor$400.inventoryfor$360.MaloneCorporationusestheperpetualinventorymethod.OnMarch1,itpurchasediscountsfor$1,000.inventoryfor$1,000.inventoryfor$900.BellInc.tookaphysicalinventoryattheendoftheyearanddeterminedthat$780,000ofgoodswereonhand.Inaddition,Bell,Inc.determinedthat$60,000ofgoodsthatwereintransitthatwereshippedf.o.b.shippingpointwereactuallyreceivedtwodaysaftertheinventorycountandthatthecompanyhad$90,000ofgoodsoutonconsignment.WhatamountshouldBellreportasinventoryattheendoftheyear?BellInc.tookaphysicalinventoryattheendoftheyearanddeterminedthat$760,000ofBell,Inc.determinedthat$96,000ofgoodswereintransitthatwereshippedf.o.b.destination(goodswereactuallyreceivedbythecompanythreedaysaftertheinventoryBellreportasinventoryattheendoftheyear?RisersInc.reportedtotalassetsof$1,800,000andnetincomeof$200,000forthecurrentyear.Risersdeterminedthatinventorywasoverstatedby$15,000atthebeginningoftheyear(thiswasnotcorrected).Whatisthecorrectedamountfortotalassetsandnetincomefortheyear?8- RisersInc.reportedtotalassetsof$3,200,000andnetincomeof$170,000forthecurrentyear.Risersdeterminedthatinventorywasunderstatedby$46,000atthebeginningoftheyearand$20,000attheendoftheyear.Whatisthecorrectedamountfortotalassetsandnetincomefortheyear?设置了格式:设置了格式:Hudson,Inc.isacalendar-yearcorporation.Itsfinancialstatementsforthe设置了格式:设置了格式:will2013incomebeforetaxesbeoverstatedorunderstated?andthatnoadditionalerrorsoccurredin2014.Ignoringincometaxes,byhowmuchwillworkingcapitalatDecember31,2014beoverstatedorunderstated?$Thecostofgoodssoldisequalto400%ofsellingexpenses.Whatisthecostofgoodsavailableforsale? -21WinsorCo.recordspurchasesatnetamounts.OnMay5Winsorpurchasedmerchandiseonaccount,$20,000,terms2/10,n/30.Winsorreturned$1,500oftheMay5purchaseandreceivedcreditonaccount.AtMay31thebalancehadnotbeenpaid.设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:BalanceatJanuary1设置了格式:设置了格式:设置了格式:设置了格式: AssumingthatRichdoesnotmaintainperpetualinventoryrecords,whatshouldbetheinventoryatJanuary31,usingtheweighted-averageinventorymethod,roundedtothenearestdollar?AssumingthatRichmaintainsperpetualinventoryrecords,whatshouldbetheinventoryatJanuary31,usingthemoving-averageinventorymethod,roundedtothenearestdollar?8- 100units@ 350units@ 70units@ EmleyCompanyhasbeenusingtheLIFOmethodofinventoryvaluationfor10years,sinceifFIFOhadbeenused.Thus,ifFIFOhadbeenused,Emley'sincomebeforeincometaxeswouldhavebeen设置了格式:设置了格式:June设置了格式:设置了格式:JuneJune90033,300@62,40071,800@91,5002,700@600750@2,100300Assumingthatperpetualinventoryrecordsarekeptinunitsonly,theendinginventoryonaLIFObasisisAssumingthatperpetualinventoryrecordsarekeptindollars,theendinginventoryonaLIFObasisis -23Assumingthatperpetualinventoryrecordsarekeptindollars,theendinginventoryonaFIFObasisisAssumingthatperpetualinventoryrecordsarekeptinunitsonly,theendinginventoryonanaverage-costbasis,roundedtothenearestdollar,isMilfordCompanyhad500unitsof“Tank”initsinventoryatacostof$4each.Itpurchased,for$2,800,300moreunitsof“Tank”.Milfordthensold400unitsatasellingpriceof$10each,resultinginagrossprofitof$1,600.ThecostflowassumptionusedbyJohnsonisisNicholsCompanyhad500unitsof“Dink”initsinventoryatacostof$5each.Itpurchased,for$2,400,300moreunitsof“Dink”.Nicholsthensold600unitsatasellingpriceof$10each,resultinginagrossprofitof$2,100.ThecostflowassumptionusedbyNichols.isisJuneCorp.sellsoneproductandusesaperpetualinventorysystem.Thebeginningpurchased120unitsat$20each.Salesduringthemonthtotaled90unitsfor$43each.Whatisthenumberofunitsintheendinginventory?203050JuneCorp.sellsoneproductandusesaperpetualinventorysystem.Thebeginningpurchased120unitsat$20each.Salesduringthemonthtotaled90unitsfor$43each.WhatisthecostofgoodssoldusingtheLIFOmethod?8- Checkersusestheperiodicinventorysystem.Forthecurrentmonth,thebeginningtwopurchases:1,000unitsat$13eachand4,000unitsat$13.50each.Checkersalsosold4,300unitsduringthemonth.Usingtheaveragecostmethod,whatistheamountofcostofgoodssoldforthemonth?ChessTopusestheperiodicinventorysystem.Forthecurrentmonth,thebeginninginventoryconsistedof300unitsthatcost$65each.Duringthemonth,thecompanymadetwopurchases:450unitsat$68eachand225unitsat$70each.ChessTopalsosold750unitsduringthemonth.Usingtheaveragecostmethod,whatistheamountofendingCheckersusestheperiodicinventorysystem.Forthecurrentmonth,thebeginningtwopurchases:1,000unitsat$13eachand4,000unitsat$13.50each.Checkersalsosold4,300unitsduringthemonth.UsingtheFIFOmethod,whatistheendinginventory?ChessTopusestheperiodicinventorysystem.Forthecurrentmonth,thebeginninginventoryconsistedof300unitsthatcost$65each.Duringthemonth,thecompanymadetwopurchases:450unitsat$68eachand225unitsat$70each.ChessTopalsosold750unitsduringthemonth.UsingtheFIFOmethod,whatistheamountofcostofgoodssoldforthemonth?Checkersusestheperiodicinventorysystem.Forthecurrentmonth,thebeginningtwopurchases:1,000unitsat$13eachand4,000unitsat$13.50each.Checkersalsosold4,300unitsduringthemonth.UsingtheLIFOmethod,whatistheendinginventory? -25ChessTopusestheperiodicinventorysystem.Forthecurrentmonth,thebeginninginventoryconsistedof300unitsthatcost$65each.Duringthemonth,thecompanymadetwopurchases:450unitsat$68eachand225unitsat$70each.ChessTopalsosold750unitsduringthemonth.UsingtheLIFOmethod,whatistheamountofcostofgoodssoldforthemonth?BlackCorporationusestheFIFOmethodforinternalreportingpurposesandLIFOforexternalreportingpurposes.ThebalanceintheLIFOReserveaccountattheendof2012was$100,000.Thebalanceinthesameaccountattheendof2013is$150,000.Black’sCostofGoodsSoldaccounthasabalanceof$750,000fromsalestransactionsrecordedWhiteCorporationusestheFIFOmethodforinternalreportingpurposesandLIFOforexternalreportingpurposes.ThebalanceintheLIFOReserveaccountattheendof2012was$120,000.Thebalanceinthesameaccountattheendof2013is$180,000.White’sCostofGoodsSoldaccounthasabalanceof$900,000fromsalestransactionsrecordedduringtheyear.WhatamountshouldWhitereportasCostofGoodsSoldinthe2013incomestatement?MilfordCompanyhad400unitsof“Tank”initsinventoryatacostof$8each.Itpurchased600moreunitsof“Tank”atacostof$12each.Milfordthensold700unitsatasellingpriceof$20each.TheLIFOliquidationoverstatednormalgrossprofitby$-NicholsCompanyhad400unitsof“Dink”initsinventoryatacostof$10each.Itpurchased600moreunitsof“Dink”atacostof$15each.Nicholsthensold700unitsatasellingpriceof$25each.TheLIFOliquidationoverstatednormalgrossprofitby$-8- RFCompanyhadJanuary1inventoryof$150,000whenitadopteddollar-valueLIFO.Duringtheyear,purchaseswere$900,000andsaleswere$1,500,000.December31inventoryatyear-endpriceswas$215,040,andthepriceindexwas112.HayCompanyhadJanuary1inventoryof$120,000whenitadopteddollar-valueLIFO.Duringtheyear,purchaseswere$720,000andsaleswere$1,200,000.December31inventoryatyear-endpriceswas$151,800,andthepriceindexwas110.设置了格式:设置了格式:设置了格式:GrossCorporationadoptedthedollar-valueLIFOmethod设置了格式:设置了格式:设置了格式:Inventoryat -27WiseCompanyadoptedthedollar-valueLIFOmethodonJanuary1,2012,atwhichtimeitsinventoryconsistedof6,000unitsofItemA@$5.00eachand3,000unitsofItemB@$16.00each.TheinventoryatDecember31,2012consistedof12,000unitsofItemAand7,000unitsofItemB.Themostrecentactualpurchasesrelatedtotheseitemswereas设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:A$ABUsingthedouble-extensionmethod,whatisthepriceindexfor2012thatshouldbecomputedbyWiseCompany?WebWorldbeganusingdollar-valueLIFOforcostingitsinventorylastyear.Thebaseyearlayerconsistsof$350,000.Assumingthecurrentinventoryatendofyearpricesequals$483,000andtheindexforthecurrentyearis1.10,whatistheendinginventoryusingdollar-valueLIFO?WillyWorldbeganusingdollar-valueLIFOforcostingitsinventorytwoyearsago.Theendinginventoryforthepasttwoyearsinend-of-yeardollarswas$120,000and$180,000andtheyear-endpriceindiceswere1.0and1.2,respectively.Assumingthecurrentinventoryatendofyearpricesequals$258,000andtheindexforthecurrentyearis1.25,whatistheendinginventoryusingdollar-valueLIFO?8- OperaCorp.usesthedollar-valueLIFOmethodofcomputingitsinventorycost.Dataforthepastfouryearsisasfollows:YearDecemberInventoryEnd-of-year设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:OperaCorp.usesdollar-valueLIFOmethodofcomputing设置了格式:设置了格式:设置了格式:YearDecemberInventoryEnd-of-year$设置了格式:设置了格式:设置了格式:OperaCorp.usesdollar-valueLIFOmethodofcomputing设置了格式:设置了格式:设置了格式:YearDecemberInventoryEnd-of-year$ -29MultipleChoiceAnswers—cdbbcbccadcccddaabccddaabaddcdbbcddccbbbbdbdcdcdcaMULTIPLECHOICE—CPA设置了格式:设置了格式: 设置了格式:设置了格式: No No No NoThefollowinginformationappliedtoHowe,Inc.for2012:Merchandisepurchasedforresale Perez'sPerez'sPerez'sCentral $ 8- DoleCorp.'saccountspayableatDecember31,2012,totaled$650,000beforeanynecessaryyear-endadjustmentsrelatingtothefollowingtransactions:OnDecember27,2012,Dolewroteandrecordedcheckstocreditorstotaling$350,000causinganoverdraftof$100,000inDole'sbankaccountatDecember31,2012.ThechecksweremailedoutonJanuary10,2013.OnDecember28,2012,Dolepurchasedandreceivedgoodsfor$150,000,terms2/10,n/30.Dolerecordspurchasesandaccountspayableatnetamounts.TheinvoicewasrecordedandpaidJanuary3,2013.Goodsshippedf.o.b.destinationonDecember20,2012fromavendortoDolewerereceivedJanuary2,2013.Theinvoicecostwas$65,000.ThebalanceinMoonCo.'saccountspayableaccountatDecember31,2012was$900,000beforeanynecessaryyear-endadjustmentsrelatingtothefollowing:GoodswereintransittoMoonfromavendoronDecember31,2012.Theinvoicecostwas$40,000.Thegoodswereshippedf.o.b.shippingpointonDecember29,2012andwerereceivedonJanuary4,2013.Goodsshippedf.o.b.destinationonDecember21,2012fromavendortoMoonwerereceivedonJanuary6,2013.Theinvoicecostwas$25,000.OnDecember27,2012,Moonwroteandrecordedcheckstocreditorstotaling$30,000thatweremailedonJanuary10,2013.KerrCo.'saccountspayablebalanceatDecember31,2012was$1,300,000beforeconsideringthefollowingtransactions:GoodswereintransitfromavendortoKerronDecember31,2012.Theinvoicepricewas$70,000,andthegoodswereshippedf.o.b.shippingpointonDecember29,2012.ThegoodswerereceivedonJanuary4,2013.GoodsshippedtoKerr,f.o.b.shippingpointonDecember20,2012,fromavendorwerelostintransit.Theinvoicepricewas$50,000.OnJanuary5,2013,Kerrfileda$50,000claimagainstthecommoncarrier. -31WalshRetailerspurchasedmerchandisewithalistpriceof$75,000,subjecttotradediscountsof20%and10%,withnocashdiscountsallowable.WalshshouldrecordthecostofthismerchandiseasOnJune1,2012,PennyCorp.soldmerchandisewithalistpriceof$40,000toLinnonaccount.Pennyallowedtradediscountsof30%and20%.Credittermswere2/15,n/40andthesalewasmadef.o.b.shippingpoint.Pennyprepaid$800ofdeliverycostsforIsonasanaccommodation.OnJune12,2012,PennyreceivedfromLinnaremittanceinfullpaymentamountingto设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:Duringperiodsofrisingprices,aperpetualinventorysystemwouldresultinthesamedollaramountofendinginventoryasaperiodicinventorysystemunderwhichofthefollowinginventorycostflowmethods?设置了格式:设置了格式:设置了格式: 8- HiteCo.wasformedonJanuary2,2012,tosellasingleproduct.Overatwo-yearperiod,Hite'sacquisitioncostshaveincreasedsteadily.Physicalquantitiesheldininventorywereequaltothreemonths'salesatDecember31,2012,andzeroatDecember31,2013.Assumingtheperiodicinventorysystem,theinventorycostmethodwhichreportsthehighestamountofeachofthefollowingis设置了格式:设置了格式:设置了格式:设置了格式: 设置了格式:设置了格式:设置了格式:设置了格式:AphysicalcountonJanuary31,2012shows600unitsofproductAonhand.ThecostoftheinventoryatJanuary31,2012undertheLIFOmethodisWhenthedoubleextensionapproachtothedollar-valueLIFOinventorycostflowmethodisused,theinventorylayeraddedinthecurrentyearismultipliedbyanindexnumber.Howwouldthefollowingbeusedinthecalculationofthisindexnumber?设置了格式:设置了格式:设置了格式:设置了格式:atcurrentyear atbaseyear Not FarrCo.adoptedthedollar-valueLIFOinventorymethodonDecember31,2012.Farr'sentireinventoryconstitutesasinglepool.OnDecember31,2012,theinventorywas12/31/13inventoryatyear-endprices ultipleChoiceAnswers—CPAultipleChoiceAnswers—CPAaddbccacbacacbDERIVATIONS— [($50,000–$5,000)×.02]= $4,500+$3,000= Theeffectoftheerrorsinendinginventoriesreversethemselvesinfollowing $1,500–($1,500×.02)= $10.237×900= Avg.on1/6$49,910÷5,000=1/26$53,872÷5,200=$10.36×900= (100×$2.10)+(30×$2.20)=MN18- 100+350+70–130=390(100×$2.10)+(290×$2.20)= EI=9,750–7,800=1,950 (300×$3.2)+(600×$3.1)+(600×$3.4)+(450×$3.5)=设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:(3,300(3,300@3.1) (750×$3.5)+(1,200×$3.4)= $3.26×1,950= (400×$10)–$1,600=$2,400[(500×$4)+$2,800]–$2,400=$2,400b(600$10)–$2,100=$3,900b(600$10)–$2,100=$3,900[(500$5)+$2,400]–$3,900=$1,000200×$5=$1,000E.I.underc20+120–90=50b90×$20/unit==a[(2,400×$12)+(1,000×$13)+(4,000×$13.50](2,400+1,000+d[(300×$65)+(450×$68)+(225×$70)](300+450+225)=$67.54×(975–750)=c(2,400+1,000+4,000)–4,300=3,100;3,100×$13.50=d(300×$65)+[(750–300)×$68]=d(2,400+1,000+4,000)–4,300=(2,400×$12)+[(3,100–2,400)×$13]=c(225×$70)+(450×$68)+(75×$65)=ccb[(700–600)×($12–$8)]=b[(700–600)×($15–$10)]=cbcbcc($440,000×1)+($24,000×1.07)=8- [(2,000×$6)+(10,000×$5.75)+(7,000×$17)]÷[(12,000×$5)+(7,000×$16)]=1.0959=109.59%. DERIVATIONS—CPAacdbdab$75,000×.8×.9=c$40,000×.7×.8=$22,400c[(1,600×$4.00)+(4,000×$4.70)]÷5,600=a8-cc(450×$21)+(150×$22)=ab$660,000÷1.1=FlintCo.recordspurchasediscountslostandusesperpetualinventories.Preparejournalentriesingeneraljournalformforthefollowing:DillCo.recordspurchasesatnetamountsandusesperiodicinventories.PrepareentriesfortheJune11Purchasedmerchandiseonaccount,$8,000,terms2/10,15ReturnedpartofJune11purchase,$500,andreceivedcrediton30PreparedtheadjustingentryrequiredforfinancialJune8- Duringperiodsofrisingprices,theuseofFIFO(ascomparedwithLIFO)willresultinwhateffectonthefinancialstatements?Duringperiodsofrisingprices,theuseofFIFOwillresultinhigherinventory,lowercostofgoodssold,andhighergrossprofit,netincome,incometaxes,andretainedearnings.June800units@700units@8400units@600units@Whatisthecostoftheendinginventoryforitem27underthefollowingmethods?(Show设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:(a)700@$30200@$36(b)800@$36100@$30TheRockShopshowsthefollowingdatarelatedtoanitemofinventory:Inventory,January1 100units@$5.00 300units@ 70units@ -39设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:70@$6.00= 300@$5.40=May 400@May200@41,300@6May 400@May200@41,300@61,000@8800@900@700@400@1,200@1,400@300@设置了格式:设置了格式:200@$4.20$200@$4.10100@$4.40300@$4.55设置了格式:设置了格式:8- MatlockCorporationsellsitemAaspartofitsproductline.Informationastobalancesonhand,purchases,andsalesofitemAaregiveninthefollowingtableforthefirstsixmonthsof设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:of————————ComputethecostofgoodssoldforthefirstsixmonthsundertheperiodicFIFOinventorypricingmethod.设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:设置了格式:During2012,King’sDrugCompanyexperiencedasignificantincreaseintherateofgrossprofitonsales,comparedwiththerateithasaveragedinrecentyears.Youareaskedtodeterminethemostlikelyreasonforthisim