Direct labor (bottling charge) 3. How would you calculate Compass Box’s cost of goods sold (i.e., would you use FIFO, LIFO, average cost, or some other method)? What are the trade-offs across the different methods? -It would be necessary to calculate by FIFO, because to the initial purchase price it is necessary to add all the extra costs incurred during the 12 years, if LIFO or average cost is done then these costs will be understated. 4. The costs in Exhibit 3a demonstrate significant
Words: 402 - Pages: 2
of two methods, last in, first out (LIFO) or first in, first out (FIFO). Under the LIFO method, inventories are valued at their old costs. If the organization has a substantial quantity of inventory, some of it may be carried at relatively low cost, assuming some inflation in overall prices. On the other hand, if there has been technical progress in a market and prices have been falling, the LIFO method will lead to an overvalued inventory. Under the FIFO method of inventory valuation, inventories
Words: 1702 - Pages: 7
Brief Exercise 8-3 December 31 inventory per physical count | | $298,500 | Goods-in-transit purchased FOB shipping point | | 25,910 | Goods-in-transit sold FOB destination | | 22,710 | December 31 inventory | | $347,120 | ------------------------------------------------- Brief Exercise 8-6 April 23 | = | 312 x $20 | = | $6,240 | April 15 | = | 39 x $19 | = | 741 | Ending inventory | | | | $6,981 | | | | | | Cost of goods available for sale | | |
Words: 826 - Pages: 4
subtracted by COGS which then changes the gross profit ratio as well. Repeat requirements 1 and 2 assuming that Cast Iron uses the FIFO inventory cost method rather than the LIFO. See above Why does the number of units purchased have no effect on the answers to requirements 1 and 2 when FIFO method is used. FIFO is a method of valuing the COGS and uses the older inventory first. In this particular case because there is no difference in the gross
Words: 292 - Pages: 2
$590.00 Inventory $590.00 (To record merchandise sold to Pocras Co.) BE6-5 If Moraine Company used the FIFO method then the amount of cogs is $12.40 rather than $12.80 if using LIFO. It is referred to as a phantom credit since using one method can be higher or lower than using another. BE6-7 Olsson inventory Inventory Cost Market Lower of Categories
Words: 274 - Pages: 2
principle, change in estimate, change in entity, errors. Accounting changes: a. b. Comprehensive. Changes in estimate, changes in depreciation methods. Changes in accounting for long-term construction contracts. Change from FIFO to average cost. Change from FIFO to LIFO. Change from LIFO. Miscellaneous. 2, 11 8 1, 3, 4, 5, 8, 24 8, 14, 15, 17, 19 2, 18, 21 9, 16, 20 10 3 8, 9, 10 8, 9 4, 5, 9 3, 4, 6, 7, 8, 9, 10, 11, 12, 16, 17 1, 8, 13 3, 6, 7 1, 2, 4, 6, 7 1, 2, 4, 5 1, 2, 3, 4, 5, 6 Questions 2, 4
Words: 17623 - Pages: 71
Delila Wigg Student ID 51886497 Math For Business And Finance Final Examination Examination Number 06044200 1)Bank Balance 2,950.00 Less outstanding ck# 124 (1,080.00) Less outstanding ck# 138 (720.00) Add deposit in transit 3,200.00 Adjusted Bank Balance 4,350.00 Book Balance 4,010.00 Less bank fee for checks (12.00) Less bank fee for NSF (18.00) Less ATM withdrawal (30.00) Add Broom note collected 400.00 Adjusted Book Balance 4,350.00 2)5x+7y=85 substitute
Words: 1197 - Pages: 5
Helping mining and mineral companies make the grade Improving your throughput and material grade Mining is simple, right? It is all about getting more product out of the ground, processing, and transportation. Whether you’re producing gold, diamonds, platinum, coal, iron ore, aluminium, or copper – the more you dig and process, the more you sell. But how much control and monitoring do you have over your work in process? How visible is your material as it flows through stockpiles
Words: 925 - Pages: 4
Team Inventory Systems Summary The purpose of this assignment is to prepare for subsequent assignments in this course. Research one inventory system per team member used in an organization with which you are familiar. (e.g. perpetual, periodic, FIFO, LIFO) Collect four years of inventory data from each organization. If you are not abel to find data, you may also use the University of Phoenix Material: Summer Historical Inventory Data or University of Phoenix Material: Winter Historical Inventory
Words: 534 - Pages: 3
of an error in a tax return is usually considered a change in accounting method. The IRS can require a change in accounting methods if the method used by a taxpayer does not clearly reect income. IRS permission is not required for a change from FIFO to LIFO. The installment method cannot be used unless the total selling price is known. Repossessions of real property sold on the installment basis are generally nontaxable. The installment sales rules do not apply to sales at a loss. 2009 CCH. All Rights
Words: 13382 - Pages: 54
