What method inventory valuation does a Credit Union use?
Homework Answers
The Credit union assets are classified as earning and non earning. Earning assets are those such as loans and investments that produce income. Non earning assets such as buildings are assets that do not produce income directly but are necessary for the day to day operations.
The most important point is that its balance sheet does not contain inventories, typical accounts payable and accounts inventories. The concept of working capital, also known as net working capital, does not apply to credit unions since cooperatives do not have typical current assets and liabilities, such as inventories and accounts payable (AP).
Union Corp. uses the retail method of inventory valuation. The following information is available: Cost Retail...
Union Corp. uses the retail method of inventory valuation. The following information is available: Cost Retail Beginning inventory $12,000 $30,000 Purchases 60,000 110,000 Net additional markups 10,000 Net additional markdowns 20,000 Sales revenue 90,000 If the lower of cost or market rule is disregarded, what would be the estimated cost of the ending inventory? $20,800 10 $20,000 $19,200 $22,000 CHAMA w i thow Work for this question: non
What does valuation mean in accounting? What is a valuation method as it pertains to an...
What does valuation mean in accounting? What is a valuation method as it pertains to an account? To what accounts do valuation apply? Identify and explain the two measurement principles per the FASB conceptual framework. Explore and come up with the correct valuation method for each of the following balance sheet line items. Moreover, why are these accounts reported on the balance sheet at these values? 1. Inventory 2. PPE 3. Intangible assets 4. Notes Payable, short-term 5. Bonds Payable,...
1) What is the purpose of inventory valuation methods? 2) What are the four inventory valuation...
1) What is the purpose of inventory valuation methods? 2) What are the four inventory valuation methods a company can use? 3) What inventory method is best used with many items with similar costs? 4) What inventory method will provide the highest net income when prices are rising? 4) What inventory method could help a company reduce its corporate income taxes? 5) What is inventory turnover and how is it measured?
Valuation Methods: Gross Profit Method Retail Inventory Method Which methods can be used to record a...
Valuation Methods: Gross Profit Method Retail Inventory Method Which methods can be used to record a loss of inventory valuation? Know what can be included in machinery/inventory valuation – Insurance, costs to transport, installation, set up, taxes, etc
True or false. The IRS does not have to approve any changes in the inventory valuation...
True or false. The IRS does not have to approve any changes in the inventory valuation method for income tax purposes.
Why is inventory valuation important to a company? Does management have the ability to switch valuation...
Why is inventory valuation important to a company? Does management have the ability to switch valuation methods when they perceive an advantage for the company will transpire? Are you aware of any companies that have fraudently reported wrong inventory numbers? What would motivate a company or bookkeeper to report misleading inventory numbers? Why?
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product Ending Inventory Beginning Ending A 500 0.17 0.21 B 50 1.60 1.80 C 100 4.50 4.20 D 60 12.00 13.60 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product Ending Inventory Beginning Ending A 500 0.15 0.21 B 50 1.60 1.80 C 100 4.50 4.20 D 60 12.00 13.40 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product Ending Inventory Beginning Ending А 500 0.17 0.19 B 50 1.40 1.80 с 100 4.50 4.20 D 60 12.00 13.20 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure is applied on a cost basis at the unit level. 2. By excluding net markups from the cost-to-retail ratio. 3. By excluding beginning inventory from the cost-to-retail ratio. 4. By excluding net markdowns from the cost-to-retail ratio. The original cost of an inventory item is above the replacement cost and below the net realizable value. The net realizable value less the normal profit margin...
Union Corp. uses the retail method of inventory valuation. The following information is available: Cost Retail Beginning inventory $12,000 $30,000 Purchases 60,000 110,000 Net additional markups 10,000 Net additional markdowns 20,000 Sales revenue 90,000 If the lower of cost or market rule is disregarded, what would be the estimated cost of the ending inventory? $20,800 10 $20,000 $19,200 $22,000 CHAMA w i thow Work for this question: non
What does valuation mean in accounting? What is a valuation method as it pertains to an account? To what accounts do valuation apply? Identify and explain the two measurement principles per the FASB conceptual framework. Explore and come up with the correct valuation method for each of the following balance sheet line items. Moreover, why are these accounts reported on the balance sheet at these values? 1. Inventory 2. PPE 3. Intangible assets 4. Notes Payable, short-term 5. Bonds Payable,...
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product Ending Inventory Beginning Ending А 500 0.17 0.19 B 50 1.40 1.80 с 100 4.50 4.20 D 60 12.00 13.20 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round...
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