Homework Answers
Solution:
The true statement are:
1. Reported profit are higher under LIFO than FIFO by $10,000 for that year
2. Ending inventory is higher under FIFO than under LIFO by $30,000 at the end of year
3. Cost of goods sold is higher under FIFO than LIFO by $10,000
Hence last option "All of the other answers are true"
Add Answer to:
A company had a decrease in the LIFO reserve during the year from $40,000 to $30,000....
Cost of goods sold is credited for the amount of the decrease in the LIFO reserve....
Cost of goods sold is credited for the amount of the decrease in the LIFO reserve. True or False True False Insurance during transit paid by the buyer is recorded by the buyer at the time of shipment. True or False True False Periodic average cost and perpetual average cost always produce the same dollar amounts for ending inventory. True or False True False Cost of goods on consignment is included in the consignor's inventory until sold. True or False
1 points Save Ans GG Inc. uses LIFO. GG disclosed that if FIFO had been used,...
1 points Save Ans GG Inc. uses LIFO. GG disclosed that if FIFO had been used, inventory at the end of 2021 would have been S16 milion higher than the difference between UFO and FIFO at the end of 2020, Assuming GG has a 25 % income tax rate: Its reported cost of goods sold for 2021 would have been S16 milion higher if it had used FFO rather than LFO for its financial staements Its reported cost of goods...
Patch Grove Nursery uses the LIFO inventory accounting method. Maria Hu", president, wants to determine the...
Patch Grove Nursery uses the LIFO inventory accounting method. Maria Hu", president, wants to determine the !nancial statement impact of changing to the FIFO accounting method. Selected company information follows: Year-end inventory: $22,000 LIFO reserve: $4,000 Change in LIFO reserve: $1,000 LIFO cost of goods sold: $18,000 After-tax income: $2,000 Tax rate: 40% Under FIFO, the nursery's ending inventory and after-tax pro!t for the year would have been: FIFO ending inventory FIDO after-tax profit A) $18,000 $2,600 B) $26,000 $2,600...
ACCOUNTING Check Your 5 & 6 Question 6 (of 20) 6. When costs are rising over...
ACCOUNTING Check Your 5 & 6 Question 6 (of 20) 6. When costs are rising over time: O FIFO results in higher profits than LIFO O LIFO results in higher profits that FiFO. O Cost of goods sold using the weighted average method wel loe greater than LIFO cost of goods sold O ending inventory balances will be greater under LIFO
LIFO was designed to protect cash flow in industries where prices increase rapidly. It has been used for both tax and fi...
LIFO was designed to protect cash flow in industries where prices increase rapidly. It has been used for both tax and financial statement reporting since the 1930s. The higher cost of goods sold under LIFO in these circumstances results in lower reported profit than under FIFO. In the 2012 budget, President Obama has threatened to repeal LIFO. If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is...
Problem 6-4A The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory...
Problem 6-4A The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method had been used. For 2017, the accounting records show these data: Inventories Purchases and Sales Beginning (10,000 units) $20,000 Total net sales (183,000 units) $896,700 Ending (17,000 units) Total cost of goods purchased (190,000 units) 492,000 Purchases...
BobCat reported total assets of $30,000 at the end of 2019 and net income of $12,000...
BobCat reported total assets of $30,000 at the end of 2019 and net income of $12,000 for 2019. BobCat's Beginning inventory (1/1/19) was overstated by $2,000. Ignore tax effect. What is the correct amount of total assets at the end of 2019 and net income for 2019? O A. 30,000; 12,000 O B. 28,000; 12,000 O C. 30,000; 14,000 O D. 28,000; 14,000 Pick true statement about the approximation of the current cost O A. LIFO ending inventory is at...
Jones Company had 100 units in beginning inventory at a total cost of $10,000
Jones Company had 100 units in beginning inventory at a total cost of $10,000.The companypurchased 200 units at a total cost of $26,000. At the end of the year, Jones had 80 units in ending inventory.Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2)LIFO, and (3) average-cost.
Kelsh Company has the following estimated costs for next year: $ 10,000 30,000 40,000 20,000 4.000...
Kelsh Company has the following estimated costs for next year: $ 10,000 30,000 40,000 20,000 4.000 1. Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment 8,000 10,000 Kelsh estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000): a.$6.80. Os3.40. d. S8.20...
PLEASE CORRECT WRONG ANSWERS. Check my work mode : This shows what is correct or incorrect...
PLEASE CORRECT WRONG ANSWERS.
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Exercise 8-19 (Static) Perpetual FIFO adjusted to periodic LIFO; LIFO reserve [LO8-1, 8-4, 8-6] To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year: points...
Cost of goods sold is credited for the amount of the decrease in the LIFO reserve. True or False True False Insurance during transit paid by the buyer is recorded by the buyer at the time of shipment. True or False True False Periodic average cost and perpetual average cost always produce the same dollar amounts for ending inventory. True or False True False Cost of goods on consignment is included in the consignor's inventory until sold. True or False
1 points Save Ans GG Inc. uses LIFO. GG disclosed that if FIFO had been used, inventory at the end of 2021 would have been S16 milion higher than the difference between UFO and FIFO at the end of 2020, Assuming GG has a 25 % income tax rate: Its reported cost of goods sold for 2021 would have been S16 milion higher if it had used FFO rather than LFO for its financial staements Its reported cost of goods...
ACCOUNTING Check Your 5 & 6 Question 6 (of 20) 6. When costs are rising over time: O FIFO results in higher profits than LIFO O LIFO results in higher profits that FiFO. O Cost of goods sold using the weighted average method wel loe greater than LIFO cost of goods sold O ending inventory balances will be greater under LIFO
Problem 6-4A The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method had been used. For 2017, the accounting records show these data: Inventories Purchases and Sales Beginning (10,000 units) $20,000 Total net sales (183,000 units) $896,700 Ending (17,000 units) Total cost of goods purchased (190,000 units) 492,000 Purchases...
BobCat reported total assets of $30,000 at the end of 2019 and net income of $12,000 for 2019. BobCat's Beginning inventory (1/1/19) was overstated by $2,000. Ignore tax effect. What is the correct amount of total assets at the end of 2019 and net income for 2019? O A. 30,000; 12,000 O B. 28,000; 12,000 O C. 30,000; 14,000 O D. 28,000; 14,000 Pick true statement about the approximation of the current cost O A. LIFO ending inventory is at...
Kelsh Company has the following estimated costs for next year: $ 10,000 30,000 40,000 20,000 4.000 1. Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment 8,000 10,000 Kelsh estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000): a.$6.80. Os3.40. d. S8.20...
PLEASE CORRECT WRONG ANSWERS.
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Exercise 8-19 (Static) Perpetual FIFO adjusted to periodic LIFO; LIFO reserve [LO8-1, 8-4, 8-6] To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year: points...
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