Question

ITI Exercises, Exercises, Problems, and many additional resources are ce in WileyPLUS wwions s efteve Oc h t paing wll ot in sene e s y this pcy a dividemds Wha tes so be clesied asive wocharacteriss ed to help take the physical plain to Ben what this job Addam is dying for the ness eunting mid-term What should Kyle know about (a) departing from the ing or imventories and th) the meaning of "ne realiale vahae in the lower of cst or net realizable vahue method 14. Hendris Entertainment Center has 5 TVs on hand at the balance sheet date that cost 5400 each. The net realizable value is S380 per unit. Under the lower-of-cost-or-net realizable value basis of account- ing for inventories, what value should Hendrix report for the TVs on esamina 2 o basis ne Martin Compary on De the buyer on January 6 alt in the goods being in entory, and (2) Martin's the balance sheet? Why? 15. Warnke Stores has 20 toasters on hand at the balance sheet date. Each costs $27. The net realizable value is $30 per unit. Under the lower-of-cost-or-net realizable value basis of accounting for invento- ries, what value should Warnke report for the toasters on the balance ad Company include for which it paid the 3,000 but Topp was ght charges of 50. y? hipping point and sheet? Why? 16. Sayaovang Company discovers in 2020 that its ending inventory at December 31, 2019, was $7,000 understated. What effect will this error have on (a) 2019 net income, (b) 2020 net income, and (c) the combined net income for the 2 years? Dreher Company's balance sheet shows Inventory $162,800. What additional disclosures should be made? sUnder what circumstances might inventory turnover be too high? That is, what possible negative consequences might occur? 19. What inventory cost flow does Apple use for its inventories? (Hint: You will need to examine the notes for Apple's financial cost of goods hysical flow of mpractical and ror antage of the statements.) a decision #20.When perpetual inventory records are kept, the results under the FIPO and LIFO methods are the same as they would be in a periodic inventory system." Do you agree? Explain. How does the average-cost method of inventory costing differ be- tween a perpetual inventory system and a periodic inventory system? $22. When is it necessary to estimate inventories? method has andise? for sale *23. Both the gross profit method and the retail inventory method are based on averages. For each method, indicate the average used, how it is determined, and how it is applied. esold? Com- mtory, 24. Pawlowski Company has net sales of $400,000 and cost of goods available for sale of $300,000. If the gross profit rate is 35%, what is the estimated cost of the ending inventory? Show computations сur- ach her 0000 with
  

Can u help me on #s 17, 18, 20, 21, and 22? it’s important. Thanks

Answer 1

17.The categories of inventory: raw materials, work-in-process, finished goods, manufacturing supplies, and packaging supplies should be reported separately The method for valuing the inventory should be disclosed.

18. a) when cost of goods sold is high that means the cost of inventory is high

b) the average inventory is low.

c) closing inventory is low due to which the cost of goods sold is high and average inventory is low.

20. No the results would not be same for LIFO, because under periodic LIFO the costs of the latest purchases starting with the end of the year are removed first and Under perpetual LIFO, the costs of the latest purchases as of the date of each sale are removed first.

For FIFO, the value would be same as under both the systems the cost of initial purchases is removed first.

21. In periodic inventory system, average cost per unit is calculated for the entire class of inventory at the end. For calculating cost of goods sold the average cost is multiplied with the number of units sold and for computing the value of ending inventory with the closing inventory units.

In perpetual inventory system, calculation of the average inventory cost per unit is required to be done before each sale transaction.