the statement of cash flows reports the cash-basis consequences of the operating activities Exercise 13-19 a. Total units sold = 70 + 60 + 60 = 190 Total units in ending inventory = 60 FIFO ending inventory = (60 × 15) = $900 FIFO cost of goods sold = $2,500 b. LIFO ending inventory = 60 × 12 = $720 LIFO cost of goods sold = $2,680 c. Total cost of goods available for sale = 1,200 + 700 + 1,500 =
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1. Bank statement received by bank =$2,950.00 Check# 124 payment less or didn’t return from bank = $1080 Check# 138 payment less or didn’t return from bank = $720 Transit payment = $3200 Adjusted Bank Balance = $4350 Broom showed checking account balance =$4010 Charging for check printing= $12 Charging for NSF check = $18 Withdrawal record missing by Broom =$30 Note collected for Broom by bank =$400 Adjusted Book Balance =
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LIFO to be accepted as costing method? I. Introduction In the United States, the SEC is expected to eventually mandate the adoption of International Financial Reporting Standards (IFRS). U.S. standards setters have been working toward this eventuality through a process of convergence. The SEC issued a statement in early 2010 that updated its timeline and indicated that companies could be required to adopt IFRS as early as 2015 (see SEC, "Commission Statement in Support of Convergence and Global
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CHAPTER 2 Accounting for Materials Review Summary 1. Materials control includes physical control of materials and control over the investment in materials. Effective physical control of materials involves limiting the access to stored materials, segregating the duties of employees who handle materials and materials reports, and establishing an accurate recording system for materials purchases and issues. Only authorized personnel should be permitted in material storage areas, and procedures
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Impact of LIFO Accounting When discussing IFRS vs. GAAP regarding inventory, LIFO Accounting is one of the most controversial topics. Although LIFO is hardly used globally, it is heavily used in the United States. A shift from LIFO would have a significant effect on US companies specifically because tax law requires any company that uses LIFO for tax purposes to also use it for book accounting according to Internal Revenue Code (IRC) §472(c). Since IFRS disallows LIFO Accounting, US companies will
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3. Explain the financial statement and tax effects of each of the inventory cost flow assumptions. 4. Explain the lower of cost or market basis of accounting for inventories. 5. Compute and interpret the inventory turnover ratio. 6. Describe the LIFO reserve and explain its importance for comparing results of different companies. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT Questions
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IIM INDORE PGP 2015-17 FINANCIAL ACCOUNTING & CONTROL ASSIGNMENT-2 This assignment is intended to help you practice solving problems and get concept clarity on two topics: Cash Flow Statement and Inventory Valuation. Attempt all questions and submit by 31st Aug 2015. 1. S Co. entered into the following transactions: a. Paid suppliers b. Received dividend from an associate. c. Sold investments at a gain. d. Purchased copyrights with cash. e. Issued debentures in exchange
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------------------------------------------------- Top of Form Question 1 Answer saved Marked out of 1 Question text Answer the following questions using the information below: The Daltry Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of
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that would result if the company used FIFO rather than LIFO. The company uses the periodic method. FIFO: $1,410 150 units multiplied by $8 equals $1,200 30 units multiplied by $7 equals $210 $1,200 plus $210 equals $1,410 LIFO: $1,160 100 units multiplied by $6 equals $600 80 units multiplied by $7 equals $560 $600 plus $560 equals to $1,160 Therefore, the phantom profit would be $250 if the company were to use the FIFO rather than LIFO. Question 4. Compute the lower of cost
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|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: | |
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