ExxonMobil Analysis Metra Walthour American Public University System ExxonMobil is an American established gas and oil firm that has a head office in the metropolis of Irving, Texas. Even though it is American established and holds its head office in Texas, it is additionally a multinational firm that is recognized and utilized worldwide. The Exxon Firm was instituted in the year of 1934 across the mergence of the Average Oil Firm of New Jersey
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1. Arguments for and against LFO abolition in the US a) What are the arguments in favour of retaining LIFO? The arguments are being made on a number of different grounds so be clear to separate these out. b) What are the arguments in favour of the US abolishing LIFO? c) Should decisions on matters such as this be made on the basis of what is the most appropriate from an accounting perspective (i.e. principles) or from the perspective of the impact of the decision on the real economy (i
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DATE: 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
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businesses instead follow the inventory accounting method of first in, first out, or FIFO. Upon reviewing the provided information given, he has instructed them to make a large purchase of inventory for delivery 3 days before the end of the year. They are doing that to lower the income, which I don’t think this is ethical. I don’t think that R.J. would have given the same directive if they would have been using the FIFO method. The US Treasury Department, is calling for a repeal of LIFO, says that the
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d. the FIFO method is used, but not when the weighted average method is used. e. the weighted average method is used, but not when the FIFO method is used. 5. Weighted average and FIFO equivalent units would be the same in a period when: a. no beginning inventory exists. b. no ending inventory exists. c. both a beginning and an ending inventory exist but are not necessarily equal. d. the beginning inventory units equal the ending inventory units. e. Weighted average and FIFO equivalent
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the accrual-basis consequences while 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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different unit prices, it needs to make an arbitrary choice as to the assumed unit price, because a specific identification of the given items sold and unsold proves both expensive and impossible to achieve. Three major assumptions are First-in, first-out (FIFO), last-in, first-out (LIFO) and weighted average cost. Although the attribute being calculated is historical cost in all methods, the result is arbitrary
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Acct 3511 Chapter 8 Concepts – Inventory & Cost of Goods Sold Professor Marco J. Malandra, CPA 1. State 4 characteristics of Inventory & Cost of Goods Sold (CGS)? Is Inventory initially capitalized or expensed? What concept determines when it’s expensed? Inventory: 1) Asset (current) 2) Balance Sheet 3) real 4) debit NAB CGS: 1) Expense 2) Income Statement 3) nominal 4) debit NAB Matching: Any expenses associated with revenue
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LIFO is a valuation method of inventory. The other valuation methods of inventory is FIFO, which stands for first in and first out and weighted average. FIFO is a popular valuation method along with LIFO. LIFO has its advantages and disadvantages. The advantages of LIFO is that current product is measure along with its current revenues. The current market prices are matched up with current revenues. As for FIFO the older costs is matched with the recent revenues, which understates the profit
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Tax IFRS Readiness Series The uncertain future of LIFO* The uncertain future of LIFO This paper was authored by Christine Turgeon, a partner; Scott Rabinowitz, a director; Helen Poplock, a director; and Sean Pheils, a senior associate with PricewaterhouseCoopers’ Washington National Tax Services (WNTS) practice. For over 70 years, US taxpayers have been able to value the cost of their inventories using the last-in, first-out inventory method of accounting (LIFO). In general, to use LIFO
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