Question 1 According to ASC 330-10-35-2, it states, “…Thus, in accounting for inventories, a loss shall be recognized whenever the utility of goods is impaired by damage, deterioration, obsolescence, changes in price levels, or other causes. The measurement of such losses shall be accomplished by applying the rule of pricing inventories at the lower of cost or market. This provides a practical means of measuring utility and thereby determining the amount of the loss to be recognized and accounted
Words: 289 - Pages: 2
Receivable 73,750 Sales Revenue 73,750 Cost of Goods Sold 59,000 Finished Goods 59,000 2. Ending balances: a. Materials Inventory = $1,200 + $45,670 – $40,990 = $5,880 b. WIP Inventory = $3,400 + $40,990 + $22,400 + $8,800 – $58,000 = $17,590 c. Overhead Control = $9,020 – $8,800 = $220 d. Finished Goods Inventory = $2,630 + $58,000 – $59,000 = $1,630 Exercise 5.20 1. Setup rate = $156,000/1,200 = $130 per setup Purchasing rate = $187,500/15,000
Words: 427 - Pages: 2
|Under LIFO, ending inventory will consist of 8,000 units from the inventory at Jan. 1 and 1,000 units from the June 19 purchase. Therefore,| |ending inventory is (8,000 X $11) + (1,000 X $12), or $100,000. | | | | Tinker Bell Company has the following: | |
Words: 858 - Pages: 4
Uncollectible accounts | * Credit limits * Specific authorization to approve sales to new customers or sales that exceed a customer’s credit limit * Aging of accounts receivable | 3. Check inventory availability * Stock outs or excess inventory * Loss of customers | * Perpetual inventory control system * Use of bar-codes or RFID * Training * Periodic
Words: 4961 - Pages: 20
Company (a 75%-owned subsidiary) for a price of $370,500, at a markup of 30% on cost. Skyline sold $354,900 of the intercompany merchandise purchased from Peng to outside customers for $423,540 in 2015. Included in Skyline’s December 31, 2014, inventories were goods acquired from Peng at a billed price of $58,500. Prepare the working paper entry (in journal entry format) for the intercompany sale of merchandise for Peng Corporation and subsidiary for the year ended December 31, 2015. At what amount
Words: 282 - Pages: 2
production | * Breakdown of existing system * Competitors build stronger relationship with other customers | VI. Alternative Courses of Action * ACA# 1: Execute Materials Requirement Planning System. Advantages: Reduce the levels of inventory. Minimize the holding cost Disadvantages: Execution of the system will be at high cost. . High risk on the accuracy rate of information. There will be increase in training
Words: 810 - Pages: 4
Wal-Mart is one of the most successful and largest retailers in U.S. history. From 1945 to nowadays, it's operations strategy is to use low inventory levels and prices to generate faster sales based on low prices and value. Keeping inventory low allows the company to keep prices low for their customers, as well as replace products with new items once inventory is gone. This also increases demand. High demand combined with low prices leads to increased sales for the company. (2) Supply Chain Strategy
Words: 855 - Pages: 4
Summary: A summary of the current situation at Iowa Elevators from a purchasing and inventory cost perspective is that Iowa Elevators is currently in charge of two divisions—grain-handling and marketing and farm supplies and the company has been experiencing decreasing profitability. Scott McBride was asked to re-evaluate the purchasing department and implement a five year cost-savings plan to save the business. Analysis: Current Problems To get an understanding of the presentation I would
Words: 1305 - Pages: 6
Liabilities: 17.8 B | Current Assets: 22.2 B | Net Worth: 59.7B | Inventory: 3.41 B | Fixed Assets: 18.58 | Sales: 66.42 B | Net Sales: 66.42 B | Total Liabilities: 53.1 | Net Working Capital: 4.4 B | Total Assets: 77.5 B | Net Profit After Taxes: 6.73 B | Accounts Payable: 12.5 B | December 2014 | Cash: 6.13 B | Accounts Receivable: 6.65B | Current Liabilities: 18.1 B | Current Assets: 20.7 B | Net Worth: 52.4B | Inventory: 3.14 B | Fixed Assets: 17. 24 B | Sales: 66.68 B | Net Sales:
Words: 502 - Pages: 3
User and user’s strategic objective-President of Sprocket Inc. =Maximizing cash flows and profitability. Strengths * Strong management decisions regarding capacity (a lot of experience farming) * Confident Sales Division manager with regards to selling the unprocessed chickens at the desired price. Weaknesses: * Capacity issues – they could not meet sales demands on May. * Lack of forecasting production for sales (e.g. shortage in May). * George (Farm Operations) - Income statements
Words: 531 - Pages: 3
