December 31, 2014; and $181,366 at December 31, 2015. The year-end price indexes were 100 at 12/31/13, 113 at 12/31/14, and 118 at 12/31/15. Brief Exercise 8-8 Brief Exercise 8-9 Your answer is correct. Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Brief Exercise 8-9 2014 inventory at base amount ($22,363 ÷ 1.07) $20,900 2013 inventory at base amount (20,000 )
Words: 262 - Pages: 2
2002. Its address is 3701 Commerce Drive, Baltimore, MD 23239. Its employer identification number is 69-7414447. It elects to file its initial tax return for 2002 as a calendar-year corporation and uses the accrual method of accounting. It elects the LIFO method of inventory valuation. Jason Sprull (SSN 333-33-3333) and Martin Winsock (SSN 555-55-5555) formed the business. They each contributed $250,000 cash for 50 percent of the 100,000 shares of $1 par value stock issued and outstanding. The
Words: 709 - Pages: 3
Assisnment PrintView Page of 12 I C*N,WL awar0: 4 t . 10 points priceof purchased with an invoice taos Company merchandise resalefrom TusconCompany for Taospaidwithin the n160. merchandise costTuscon The had and termsof 2110, $14,322. $21,000 credit period. inventory system. Assume bothbuyer seller a perpetual that and use discount (Omit the "$" sign in your l(a)Prepare entriesthat the buyershouldrecordfor the purchase. response.) General Journal Merchandise inventory payable lAccounts
Words: 2511 - Pages: 11
Impact of LIFO Accounting When discussing IFRS vs. GAAP regarding inventory, LIFO Accounting is one of the most controversial topics. Although LIFO is hardly used globally, it is heavily used in the United States. A shift from LIFO would have a significant effect on US companies specifically because tax law requires any company that uses LIFO for tax purposes to also use it for book accounting according to Internal Revenue Code (IRC) §472(c). Since IFRS disallows LIFO Accounting, US companies will
Words: 482 - Pages: 2
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
Words: 295 - Pages: 2
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
Words: 761 - Pages: 4
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
Words: 1982 - Pages: 8
Technology & Operation Management, GSM 430 Case Analysis Content: Manzana Insurance is a property insurance company that operates through a network of branch offices. It does not deal directly with the public but with independent agents who in return deal with the customers. Agents require Low turnaround time and fast renewal rates. Initial analysis of the second quarter performance figures of Fruitvale branch at Manzana Insurance indicates declining profits, poor operating performance and
Words: 1047 - Pages: 5
1.) Costs assigned to the building of a house should appear on the income statement when Answer | a. | the purchase order to manufacture the house is received. | | b. | the house is sold. | | c. | cash is collected for the sale of the house. | | d. | the house is completed. | 2.) The basic document for keeping track of costs in a job order costing system is a Answer | a. | labor time card. | | b. | job order cost card. | | c. | process cost report. | | d. | materials
Words: 3291 - Pages: 14
to Manzana’s ability to compete with Golden Gate,whose quicker guaranteed turnaround time will generate loyalty among independentagents and result in further loss of business for Manzana. To prevent this, thefollowing steps are recommended:-(i)the FIFO system on all requests received should be strictly implemented;(ii)the reward system for employees should be reviewed and aligned to supportthe implementation of (i);(iii) RERUNs should be sent to Distribution Clerks at least three days prior to theexpiry
Words: 2129 - Pages: 9
