Homework Answers
LIFO - Last in first out method is one of valuation of inventory method in this method of Cost of goods sold will be valued at last purchased but taken first for sold.
FIFO – First in first our method is also one of the method of valuation of inventory. In this method cost of goods sold is taken on first came first taken basis.
Material prices sometimes are on rising basis and sometimes it is decline pricing basis. When the price of inventory is on increasing basis than Cost of Goods Sold as LIFO will be higher compare to cost of Goods sold as per FIFO basis.
So due to changes in pricing of inventory and valuation method favor one financial statement over another.
It means the given statement is correct.
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8) Does an inventory method favor one financial statement over another? Explain using LIFO and FIFO...
method would it choose? P6-29A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and...
method would it choose? P6-29A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted average Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: 5. Units Unit Cost Unit Sales Price $85 45 Aug. 3 8 Sale Purchase 90 $54 21 Sale 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record for the...
E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO. and Weighted Average Cost Scoresby...
E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO. and Weighted Average Cost Scoresby Inc. tracks the number of units purchased and sold throughout each year but annlies inventory costing method at the end of the year, as if it uses a periodic inventory system. Assum its accounting records provided the following information at the end of the annual accountine period, December 31. LO 7-3 Transactions Units Unit Cost 3,000 $ 8 a. Inventory, Beginning For the year:...
e7-6 analyzing and interpreting the financial statement effects of periodic fifo, lifo, and weighted average cost...
e7-6 analyzing and interpreting the financial statement
effects of periodic fifo, lifo, and weighted average cost
LO 7-3 an e') weighted average cost methods. E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost Onion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assum its accounting records provided the...
Find the inventory value using the weighted average method, the FIFO method, and the LIFO method....
Find the inventory value using the weighted average method, the FIFO method, and the LIFO method. Purchases Beginning inventory: 23 units at $8 June: 16 units at $9 August 15 units at $10 Now in inventory: 20 units
29A Accounting for inventory using the perpetual inventory system/FIFO, LIFO, and weighted average, and comparing FIFO,...
29A Accounting for inventory using the perpetual inventory system/FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price $ 81 Aug. 3 8 85 $50 Sale Purchase Sale Purchase 75 45 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. Prepare...
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information...
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation: Carolina Company Income Statement For the year ended December 31 Sales 60,000 Cost of Goods sold 23,000 Gross Profit 37,000 Expenses 13,000 Income before taxes $ 24,000 Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9,100 . a. Determine what...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO,...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Objectives 2, 3 5. FIFO GP $5,235 Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price Aug. 3 Sale 45 $85 8 Purchase 90 $54 21 Sale 85 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record...
Financial information which does not favor one set of interested parties over another is: A. neutral....
Financial information which does not favor one set of interested parties over another is: A. neutral. B. verifiable. C. relevant. D. faithfully represented.
On January 1, 2018, Delta changed its inventory valuation method from LIFO to FIFO for financial...
On January 1, 2018, Delta changed its inventory valuation method from LIFO to FIFO for financial statement purposes. The change will result in an $800,000 increase in inventory at January 1, 2018. The tax rate is 30%. How much should retained earnings be adjusted (indicate direction and dollar amount) so that it is correct (using the new method) as of January 1, 2018
periodic inventory using FIFO, LIFO, and weighted average cost methods Periodic Inventory Using FIFO, LIFO, and...
periodic inventory using FIFO, LIFO, and weighted average cost
methods
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: 12 units at $35 $420 Jan. 1 Inventory 540 Purchase 15 units at $36 Aug. 7 380 Purchase 10 units at $38 Dec. 11 $1,340 37 units There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is...
method would it choose? P6-29A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted average Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: 5. Units Unit Cost Unit Sales Price $85 45 Aug. 3 8 Sale Purchase 90 $54 21 Sale 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record for the...
E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO. and Weighted Average Cost Scoresby Inc. tracks the number of units purchased and sold throughout each year but annlies inventory costing method at the end of the year, as if it uses a periodic inventory system. Assum its accounting records provided the following information at the end of the annual accountine period, December 31. LO 7-3 Transactions Units Unit Cost 3,000 $ 8 a. Inventory, Beginning For the year:...
e7-6 analyzing and interpreting the financial statement
effects of periodic fifo, lifo, and weighted average cost
LO 7-3 an e') weighted average cost methods. E7-6 Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost Onion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assum its accounting records provided the...
Find the inventory value using the weighted average method, the FIFO method, and the LIFO method. Purchases Beginning inventory: 23 units at $8 June: 16 units at $9 August 15 units at $10 Now in inventory: 20 units
29A Accounting for inventory using the perpetual inventory system/FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price $ 81 Aug. 3 8 85 $50 Sale Purchase Sale Purchase 75 45 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. Prepare...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Objectives 2, 3 5. FIFO GP $5,235 Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price Aug. 3 Sale 45 $85 8 Purchase 90 $54 21 Sale 85 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record...
periodic inventory using FIFO, LIFO, and weighted average cost
methods
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: 12 units at $35 $420 Jan. 1 Inventory 540 Purchase 15 units at $36 Aug. 7 380 Purchase 10 units at $38 Dec. 11 $1,340 37 units There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is...
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