Bankruptcy of a key supplier e. A firm's website in adversely making personal customer information, making it public to mailing list company. 10. What is the distinction between Merchandising function & Buying Function? 11. The FIFO method seems to be more logical than LIFO method because it assumes the 1st merchandise purchased is the 1st merchandise sold. So why do more retailers use LIFO method. 12. Present 2 situations in which it will be advisable for Retailers to take
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construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. Inventory Valuation Methods are First-in-Last-out (FIFO), Last-in-First out (LIFO) and Average Cost Method. These method are designed to calculate the cost of goods sold and cost of ending inventory. An explanation of the inventories valuation method are as follow: FIFO is assumed that items from the inventory are sold in the order in which they are purchased or produced. Purchase is of an out let as a store
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4,500 Goods on hand 1,500 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
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THETA 5 Month Receipts Cost Issue FIFO LIFO Jan 300 4.5 1,350 1,350 Feb 200 4.5 150 1,575 1,575 Mar 400 4.5 3,375 3,375 Apr 4.5 250 2,250 2,250 May 400 4.5 100 3,600 3,600 Jun 300 5 5,100 5,100 Jul 150 4,425 4,350 Aug 400 5 6,425 6,350 Sep 300 5 7,925 7,850 Oct 400 6,125 5,850 Nov 400 6 8,525 8,250 Dec 6 250 7,400 6,750 Total 2,700 1,300 Closing stock (FIFO) = £7,400 Closing stock (LIFO)
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Assignment: Cost Accounting Applied By George T. Neale Professor Bryan Womack Course Title ACC 350012VA016-1122-001 Cost Accounting February 26, 2012 Companies that are successful financially know what their costs are and how those costs are being spent. The company I have chosen wants to change from a general accounting system where costs are put in general categories and they currently do not have
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such sale, or (3) in the form of materials or supplies to be consumed in the production process or in the rendering of services. Under the ASC 330-10-30, initial measurement cost formulas are: • Specific Identification • First-in, First-out (“FIFO”) • Weighted-Average Cost • Last-in, First-out (“LIFO”) Whereas IFRS does not allow the costing method use of last-in-first-out. Inventory is subsequently measured at the lower of cost or market (ASC 330-10-35). Market is defined as current
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Please read the question careful and answer T for True and F for False 1.If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. 2.Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs. 3.A periodic inventory system does not require a detailed record of inventory items. 4.Control over cash disbursements is improved
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receivables, inventory, long-lived assets, and debt and equity would all have to be altered when switching between the two. For example, LIFO inventory valuation is not permitted under IFRS. Because of this, a company would have to recalculate under the FIFO method as well as adjust COGS and tax expenses. 2. Which method best reflects the economic reality? For investors, IFRS may present more approachable and comprehensive financial statements making them easier to analyze and understand. However
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6-2 Lewis Corporation* Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method). Exhibit 1 Inventory Transactions 2000-2002--------------------------------------------------- 2000 Beginning Balance 1
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6-2 Lewis Corporation* Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method). Exhibit 1 Inventory Transactions 2009-2010--------------------------------------------------- &nbs p;
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