Primarily concerned with the health of the operating aspects of the business.Edward Drewery Controller for Morgan ManufacturingCompetitor of Morgan Manufacturing 5. Morgan ManufacturingMorgan Manufacturing uses LIFO as its inventory costing method and provides the LIFO reserve.Westwood uses FIFO as its inventory costing method.Events and Facts: Morgan OperationsProductivity ImprovementsFinancial StatementsComparison of Operating PerformanceOver 2006, Morgan Manufacturing implemented significant productivity
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of an error in a tax return is usually considered a change in accounting method. The IRS can require a change in accounting methods if the method used by a taxpayer does not clearly reect income. IRS permission is not required for a change from FIFO to LIFO. The installment method cannot be used unless the total selling price is known. Repossessions of real property sold on the installment basis are generally nontaxable. The installment sales rules do not apply to sales at a loss. 2009 CCH. All Rights
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subtracted by COGS which then changes the gross profit ratio as well. Repeat requirements 1 and 2 assuming that Cast Iron uses the FIFO inventory cost method rather than the LIFO. See above Why does the number of units purchased have no effect on the answers to requirements 1 and 2 when FIFO method is used. FIFO is a method of valuing the COGS and uses the older inventory first. In this particular case because there is no difference in the gross
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Name] [Writer’s Name] [Course] [Date] Week 3 - DQs 1. LIFO vs. FIFO The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? Guided Response: Analyze several of your peers’
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Loupu Nyenlekewoi HAS 525 Fanancial Health Management Dr. April 27, 2014 Strayer University 8.1 Assignment Exercise: a.1) FIFO Time | Purchase or Sale | Units | Cost | Total = Cost x Units | 1 | I | 25 | 000 | $0.00 | 2 | P | 6 | 500 | $3,000.00 | 3 | S | 90 | 000 | $0.00 | 4 | P | 32 | 000 | $0.00 | 5 | p | 20 | 000 | $0.00 | Calculate Unit Items: Units available for sale = 6 + 32 = 38 Units sold = 25 + 90 + 20 = 135 Units in Ending Inventory = 38 - 135 = -97 Calculate
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First in, First out or FIFO is an inventory method wherein the item that arrived first will also be the first to be shipped out to the customer. The cost of goods sold is charged during the sale of an item. This is most applicable to goods with an expiration date such as grocery items to prevent spoilage. Last in, First Out or LIFO is an inventory method wherein the item that has recently arrived will be the first to be shipped out to the customer. The price of the items is valued at the current
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Submission Date SUBJECT: Recommended Inventory Valuation Method Introduction I have calculated the ending inventory for Fan Company A using the four following inventory valuation methods: Periodic FIFO (First In, First Out) Periodic Average Cost Perpetual FIFO Perpetual LIFO (Last In , First Out) to determine which inventory method to recommend to the management of the Company. A summary of my calculations follows. Provide an explanation of your calculations for each of
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Accounting Memp Interforoffice Memo TO: ACCOUNTING TEAM MATE FROM: ANDREW ACCOUNTANT SUBJECT: LIFO FIFO EXPLANATION DATE: 2/24/2015 Occasionally an individual who works at a company in a certain department is required to pass on information to another department or a supervisor. It is necessary to make this memo accurate and professional since information on inventory valuations has been requested by the executive vice president. To be considered that they are not aware of the jargon
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2002. Its address is 3701 Commerce Drive, Baltimore, MD 23239. Its employer identification number is 69-7414447. It elects to file its initial tax return for 2002 as a calendar-year corporation and uses the accrual method of accounting. It elects the LIFO method of inventory valuation. Jason Sprull (SSN 333-33-3333) and Martin Winsock (SSN 555-55-5555) formed the business. They each contributed $250,000 cash for 50 percent of the 100,000 shares of $1 par value stock issued and outstanding. The
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3217 DECEMBER 9, 2008 WILLIAM E. BRUNS SHARON M. BRUNS SUSAN HARMELING Merrimack Tractors and Mowers, Inc.: LIFO or FIFO? Ricardo “Rick” Martino, president and chief operating officer of Merrimack Tractors and Mowers, Inc., of Nashua, New Hampshire, felt that his job had grown much more complicated during 2007 and 2008. Merrimack was a major regional manufacturer and seller of large commercial grass mowers based on a design developed by his grandfather in the years after World War II. The
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