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P6-9A Tascon Corporation sells coffee beans,
which are sensitive to price fluctuations. The following inventory
information is available for this product at December 31, 2018:
Coffee Bean
Units
Unit Cost
Net Realizable Value
Coffea arabica
13,000 bags
$5.60
$5.55
Coffea robusta
5,000 bags
3.40
3.50
(a) Calculate Tascon’s inventory at the lower of cost and net
realizable value.
(b) Prepare any journal entry required to record the LCNRV,
assuming that Tascon uses a perpetual inventory system.
(c) Explain whether Tascon...
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QUESTION 5: P6-9ATascon Corporation sells
coffee beans, which are sensitive to price fluctuations. The
following inventory information is available for this product at
December 31, 2018:
Coffee Bean
Units
Unit Cost
Net Realizable Value
Coffea arabica
13,000 bags
$5.60
$5.55
Coffea robusta
5,000 bags
3.40
3.50
(a) Calculate Tascon’s inventory at the lower of cost and net
realizable value.
(b) Prepare any journal entry required to record the LCNRV,
assuming that Tascon uses a perpetual inventory system.
(c) Explain whether...
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P6-9A Tascon Corporation sells coffee beans,
which are sensitive to price fluctuations. The following inventory
information is available for this product at December 31, 2018:
Coffee Bean
Units
Unit Cost
Net Realizable Value
Coffea arabica
13,000 bags
$5.60
$5.55
Coffea robusta
5,000 bags
3.40
3.50
(c) Explain whether Tascon should consider each type of coffee
bean separately when determining the lower of cost and net
realizable value. Identify an argument in support of both types of
coffee beans being considered...
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Exercise 6-1 Carla Vista Co. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Unit Cost Coffee Bean Coffea arabica 12,000 bags Coffea robusta 5,000 bags Units Market Market $5.90 $5.87 3.40 3.50 Calculate Tascon's inventory by applying the lower-of-cost-or-market basis Tascon's inventory Click if you would like to Show Work for this question: Open Show Work Problem 6-2A Grouper Corp. markets CDs of numerous performing artists....
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Principles of auditing
ch 8 Internal Controls
QUESTION 10 Which of the following elements is not a part of an entity's internal controls? A. Information and communication systems support. B. Control risk. C. Control activities. D. The control environment. QUESTION 11 Which of the following is the correct order for performing the procedures noted? A. Perform substantive tests, test controls, understand the system of internal control. B. Test controls, understand the system of internal control, perform substantive tests. C. Test...
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For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once. A control procedure that reduces to practically zero the risk of an A. Val IT undetected error or irregularity B. detective controls A process whereby management identifies possible events that C. fidelity bond represent a problem to the firm and then identifies appropriate responses to those problems D. internal control...
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18) Which of the following is true of internal control? A) A company's outside auditor is responsible for the company's internal control system. B) Internal control procedures tend to diminish the importance of operational efficiency. C) Internal controls are only necessary for public companies. D) One of the major purposes of internal control is to ensure that the assets are safeguarded.
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1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
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Exercise 13-2 The following are selected 2017 transactions of Novak Corporation. Sept. 1 Purchased inventory from Orion Company on account for $52,900. Novak uses a periodic inventory system and records purchases using the gross method of accounting for purchase discounts. Issued a $52,900, 12-month, 8% note to Orion in payment of Novak's account Borrowed $79,100 from the bank by signing a 12-month, non-interest-bearing $80,400 note Oct. 1 1 Prepare journal entries for the selected transactions above. (Credit account titles are...
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5. Which of the following statements about maintaining a strong system of internal control is true? a. The individual who receives cash is also responsible for entering the collection of cash into the accounting records. b. Internal controls are easy to administer and achieve with a small company. c. Numeric controls such as pre-numbered documents d. Bank reconciliations prepared by the same person who writes checks to vendors