FedEx uses the weighted average method. Explain why the method is appropriate. Explain the significant accounting policies and practices that will be used with the inventory valuation method.
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
5. During 2014, Brookside Trading decided to change from the FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows: January 1 December 31 FIFO 7,200,000 7,900,000 Weighted Average 7,700,000 8,300,000 Ignoring income tax, compute for the amount that should be reported as the effect of the accounting change in the statement of changes in equity for 2014,
B. (5%) Explain the specific identification cost inventory method and compare it with cash-flow methods of FIFO and weighted-average cost. Discuss the effect of each method on assets valuation and income. (word limit: 500 words)
9. A company uses the weighted average method of inventory valuation under a periodic inventory system. The company began the year with a zero inventory balance. They had the following transactions during the year. (30 Points) Purchased 65 units at AED 7 per unit Purchased 130 units at AED 7 per unit Sold 110 units at AED 11 per unit Purchased 55 units at AED 8 per unit Sold 110 units at AED 13.25 per unit • At the end...
Exercise 6-49 Effects of Inventory Costing Methods Borgia Enterprises has the following statement of earnings data available for 2018: Sales revenue Operating expenses Interest expense $737,200 243,700 39,500 34% Income tax rate Borgia uses a perpetual inventory accounting system and the weighted average cost method. Borgia is considering adopting the FIFO method for costing inventory. Borgia's accountant prepared the following data: If Weighted Average Cost Used $ 61,850 403,150 If FIFO Used $ 80,200 384,800 Ending inventory Cost of goods...
1. Explain the weighted average inventory cost method and give an example?
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory $ 980 557 Direct materials Conversion costs Current period costs Direct materials Conversion costs 27,220 16,803 Quantity information is obtained from the manufacturing records and includes the following Beginning inventory 80 0 units (65% complete as to materials, 56% complete as to conversion) Current period units started Ending inventory 5,900 units 1,500...
25. Match each of the following terms a through j with the appropriate definition (a) Specific identification method (b) Days' sales in inventory (c) Conservatism principle (d) Inventory turnover (e) Retail inventory method (1) Interim statements (g) Net realizable value (h) LIFO method (1) Weighted average inventory method () FIFO method (1) The accounting principle that aims to select the less optimistic estimate when two or more estimates are about equally likely. _(2) The expected sales price of an item...
29. The pricing of issues from inventory must be deferred until the end of the accounting period under the following method of inventory valuation: [a] moving-average. [b] weighted average. (c) LIFO perpetual. [d] FIFO.
On December 31, 2018 Pharoah Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2018 beginning inventory to increase by $920000. The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 30% tax rate, is A. $0. B. $644000. C. $276000. D. $920000.
Calculator Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: Units completed 210,000 Add: Units in EWIP X Fraction complete: (66,000 X 50%) 33,000 243,000 Equivalent units of output (weighted average) Less: Units in BWIP X Fraction complete: (50,000 X 60%) Equivalent units of output (FIFO) 30,000 213,000 The costs that bylord had to account for during the month of November...