Answer :
PART 1 | |||||
CASH FLOW STATEMENT | |||||
OPENING CASH | 44000 | ||||
INFLOW- | NET INCOME | 2,000,000 | |||
INVENTORY | 30,000 | ||||
ACCOUNTS PAYABLE | 12,000 | ||||
INVESTMENT | 45,000 | ||||
BONDS ISSUED | 60,000 | 2,147,000 | |||
2,191,000 | |||||
OUTFLOW- | ACCOUNTS RECEIVABLE | 15,000 | |||
SALARY PAYABLE | 24,000 | ||||
EQUIPMENT | 350,000 | ||||
CASH DIVIDEND | 48,000 | 437,000 | |||
CLOSING CASH | 1,754,000 |
PART 2 | STOCK AND PURCHASES | |||||||||
(A) | ||||||||||
DATE | UNITS | COST/UNIT | COST OF GOODS SOLD | |||||||
1 | 2,000 | 6 | 12,000 | |||||||
10 | 3,000 | 8 | 24,000 | |||||||
15 | 1,500 | 10 | 15,000 | |||||||
18 | 1,800 | 11 | 19,800 | |||||||
25 | 1,000 | 14 | 14,000 | |||||||
9,300 | 9.12 | 84,800 | ||||||||
SALES | 5000 @ 28/ UNIT | |||||||||
IF FIFO METHOD | ||||||||||
COST OF GOODS SOLS | ||||||||||
DATE | UNITS | COST/UNIT | COST OF GOODS SOLD | |||||||
1 | 2000 | 6 | 12,000 | |||||||
10 | 3000 | 8 | 24,000 | |||||||
5000 | 36,000 | |||||||||
INVENTORY | ||||||||||
DATE | UNITS | COST/UNIT | COST OF GOODS SOLD | |||||||
15 | 1500 | 10 | 15,000 | |||||||
18 | 1800 | 11 | 19,800 | |||||||
25 | 1000 | 14 | 14,000 | |||||||
4,300 | 48,800 | |||||||||
IF LIFO METHOD | ||||||||||
COST OF GOODS SOLS | ||||||||||
DATE | UNITS | COST/UNIT | COST OF GOODS SOLD | |||||||
10 | 700 | 8 | 5,600 | |||||||
15 | 1,500 | 10 | 15,000 | |||||||
18 | 1,800 | 11 | 19,800 | |||||||
25 | 1,000 | 14 | 14,000 | |||||||
5,000 | 54,400 | |||||||||
INVENTORY | ||||||||||
DATE | UNITS | COST/UNIT | COST OF GOODS SOLD | |||||||
1 | 2,000 | 6 | 12,000 | |||||||
10 | 2,300 | 8 | 18,400 | |||||||
4,300 | 30,400 | |||||||||
IF AVERAGE COST METHOD | ||||||||||
COST OF GOODS SOLD(5000*9.12) | 45,600 | |||||||||
INVENTORY(4300*9.12) | 39,216 |
(B) Company should use average cost method
Part 3 | |||||
PRODUCTS | A | B | C | ||
a | Selling price | 700 | 650 | 800 | |
b | Cost | 480 | 250 | 350 | |
c | Cost to complete | 150 | 200 | 350 | |
d | Cost to sell | 100 | 150 | 120 | |
a-c-d | NRV | 450 | 300 | 330 | |
LOWER OF | Unit / Value | 450 | 250 | 330 | |
NRV OR COST | |||||
IF UNITS | |||||
4300 | 1935000 | 1075000 | 1,419,000 | ||
FINAL INVENTORY VALUE |
To be kept a clear structure and organized paper work as accordingly to this guideline. To...
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Bonita Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item | Estimated selling price Cost $132 83 33 11 $121 88 33 20 $105 88 28 11 $99 88 39 22 $121 55 33 11 $99 40 33 22...
Coronado Company uses the LCNRV method, on an individual-item
basis, in pricing its inventory items. The inventory at December
31, 2017, consists of products D, E, F, G, H, and I. Relevant per
unit data for these products appear below.
Item D
Item E
Item F
Item G
Item H
Item I
Estimated selling price
$133
$122
$105
$100
$122
$100
Cost
83
89
89
89
56
40
Cost to complete
33
33
28
39
33
33
Selling costs
11...
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method, on an individual-item basis, in pricing its inventory
items. The inventory at December 31, 2017, consists of products D,
E, F, G, H, and I. Relevant per unit data for these products appear
below. Item D Item E Item F Item G Item H Item I Estimated selling
price $128 $118 $102 $96 $118 $96 Cost 80 86 86 86 54 39 Cost to
complete 32 32 27 37 32 32 Selling...
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