for the Standard line catamarans and 1.600€ for the Tornado line. Assume the following in your answer: ‐ ‐ ‐ Work in process inventories are negligible and ignored. Direct materials inventory and finished goods inventories are costed using the FIFO method. Unit cost of direct materials purchased and finished goods are constant in March 2010. Prepare the following budgets for March 2010: a. b. c. d. e. f. g. h. Revenues budget Production budgets in units Direct materials usage
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Standard-Based Decision Making Courteney Alderman ETH/376 March 23, 2015 Juanita Davis Audit Opinions When performing an audit there are four different types of audit opinions that Green and Associates can provide when the audit has been finished. They can provide an unqualified, unqualified with explanatory paragraph, qualified, and an adverse opinion. * Unqualified opinion- An auditor can give an unqualified opinion when it comes to a company’s financial statements when the financials
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This result indicates that the type of earnings management tend toward efficient earnings management. ii. While for the second proposal where is Jim trying to reduce inventory to create a LIFO inventory layer adjustment. This proposal will be more probably a bad earning management. As we know, LIFO method known as “the cost of goods sold” as opposed to using what was paid for the inventory already in
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A Controller’s Challenge Background “Would you come over to Mr. Patterson’s office right away?” Jim Woodruff was a bit puzzled about the summons from the president’s office; no meeting was scheduled and Bill Patterson’s style was not an impromptu one. Organizer and calculator in hand, Jim left for the meeting wondering what the subject might be and how he might mentally prepare for whatever discussion was about to take place. Jim was the recently appointed as the controller of Advanced Parts
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Intermediate Accounting 3 October 20th, 2015 FASB Comment Letter On May 13th, 2015 FASB issued Accounting Standards Update, Simplifying the Measurement of Inventory. The Board came to the decision of abandoning inventory measured using the LIFO method, which is using last-in, first-out. They also decided on excluding the retail inventory methods. The Board also requires inventory to be measured at net realizable value and at the lower of cost. They believe that the result will cause a
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Generally Accepted Accounting Principles (GAAP) are: 1. Specific Identification Method 2. First-in, First-out (FIFO) 3. Last-in, First-out (LIFO) 4. Average Cost Method Each affects the valuation of inventory and the cost of goods differently. Specific identification method, although the most accurate method, it is not practical for large volume inventories that are of similar products. FIFO is a cash flow assumption that assumes earlier goods purchased by a company are the first ones to be sold
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Inventory methods go back to the times of the first recorded businesses, First in First out method or FIFO, is commonly accepted over all accounting standards; however, the antithesis of FIFO is not as easily agreed upon. Last in First Out method, was ruled as not an acceptable accounting method for valuation of inventories in 1930 by the Supreme Court. This was after issues with many companies seeing LIFO as the most accurate way to valuate their inventories, which caused many law suites and lead to the
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|[pic] |Course Syllabus | | |School of Business | | |QRB/501 Version 2 | |
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Consequently, the shareholders were asking for the removal of Mr. Martino as the company’s COO Current Method of Inventory Accounting at Merrimack: Merrimack currently followed the LIFO method of inventory accounting on a periodic basis. This had been done so as to save income tax and preserve cash for further investments. The LIFO (Last-In-First-Out) method of inventory accounting stipulated that the cost of goods sold be calculated based on the cost of
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Periodic FIFO 1,000 X $12 = $12,000 2,000 X $18 = 36,000 1,500 X $23 = 34,500 4,500 $82,500 (b) Perpetual FIFO 1,000 X $12 = $12,000 2,000 X $18 = 36,000 1,500 X $23 = 34,500 4,500 $82,500 (c) Periodic LIFO
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