The corresponding A/R, Inventory, Cost of Goods sold should all be adjusted. WAG’s net income in 2011 is overstated by recording this lucrative transaction. The revenue recognition method for artist fees is complied with U.S. GAAP. It is recognized as it is earned each month. So this part is fairly presented. Costing and valuation method for inventory * Incorrect period to apply the lower of cost or market WAG record its inventory of artwork at the lower of cost or market, which seems to
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included in Smart’s inventory. (b) The goods in transit should not be included in the inventory count because ownership by Smart does not occur until the goods reach the buyer. (c) The goods being held belong to the customer. They should not be included in Smart’s inventory. (d) Ownership of these goods rests with the other company. Thus, these goods should not be included in the physical inventory. BE 6-2 The items that should be included in inventoriable costs are: (a) Freight-in
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affects costs and supplier management. We consider a firm that has access to a responsive near-shore source (e.g., Mexico) and a low-cost offshore source (e.g., China). The firm must determine an inventory sourcing policy to satisfy random demand over time. Unfortunately, the optimal policy is too complex to allow a direct answer to our key question. Therefore, we analyze a tailored basesurge (TBS) sourcing policy that is simple, used in practice, and captures the classic tradeoff between cost and responsiveness
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b Materials and In Process Inventory (MIP), June 1 Materials received Materials and In Process Inventory (MIP), June 30 Materials used to be backflushed to finished goods 2. a Raw materials purchased Raw materials used Balance of MIP, end 3. P 10,000 205,000 ( 12,500) P202,500 P880,000 (850,000) P 30,000 c MIP inventory, beginning Raw materials purchased MIP inventory, ending Materials to be backflushed to finished goods Conversion costs to be backflushed to finished
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Inventory Management | Intro to Logistics and Supply Chain Management | Susan Calhoun | Gettemeier, Alexandria | 4/1/2012 | Inventory Management “Inventory Management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory.” (BarcodesINC 1) An inventory manager supervises the product from the manufacturer to the warehouse where it is being stored; then from the point of sale to the customer. An inventory manager becomes involved in
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__________ than U.S. GAAP.. 4. Inventory is an example of IAS that provides less extensive guidance than U.S. GAAP. a. True/False 5. What should include in the cost of inventories? 6. List costs that are not included in the costs of inventories. 7. How does IAS 2 require inventory to be reported on the balance sheet? How does U.S. GAAP require inventory reported on the balance sheet? 1 8. How does application of the lower of cost or market rule for inventories differ between IFRS and U.
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revolutionized communication and data exchange, facilitating the necessary flow of information between the companies in the supply chain. Companies that practice supply chain management report significant cost and cycle time reductions. For example, Wal-Mart Stores Inc. announced increases in inventory turns, decreases in out-of-stock occurrences, and a replenishment cycle that has moved from weeks to days to hours. A fundamental premise of supply chain management is to view the network of facilities
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On Assets Page 6 - 7 Efficiency: Also called Asset Management ratios. Indicator of how efficiently the company manages its assets. Days In Receivables Accounts Receivable Turnover Days In Inventory Inventory Turnover Sales To Total Assets Days In Accounts Payable Accounts Payable Turnover LIQUIDITY Financial ratios in this category measure the company's
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2 Materials BASIC CONCEPTS AND FORMULAE 1. Maximum Level: It indicates the maximum figure of inventory quantity held in stock at any time. 2. Minimum Level: It indicates the lowest figure of inventory balance, which must be maintained in hand at all times, so that there is no stoppage of production due to non-availability of inventory. 3. Re-order level: This level lies between minimum and the maximum levels in such a way that before the material ordered is received into the
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corporation with domestic and international segments. Inventory Merchandise inventories are assigned cost of unsold units left on-hand (Kieso, Weygandt, Warfield, 2007). Merchandise inventories are recorded at the lower of cost using either the average cost or first-in first-out method, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement
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