sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5) LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold FIFO will have the highest ending inventory LIFO will have the lowest cost of goods sold 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or
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on inventory valuation Valuing inventory is usually accomplished using one of three methods. FIFO (first in, first out), LIFO (last in, first out), and weighted average. With the FIFO method, the first items purchased would be the first items removed from the inventory. The LIFO method removes the most recently purchased inventory items first. Weighted average is a compromise between FIFO and LIFO. When weighted average is used the total cost of inventory available for sale is divided by the
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A summary of Wal-Mart’s financial performance in fiscal year 2008 can be found in Wal-Mart’s 2008 Annual Report, which is available on walmartstores.com. Wal-Mart’s fiscal year 2008 ended on January 31, 2008. Unless otherwise stated, references to years in this report relate to fiscal years, rather than to calendar years. Key highlights from the Annual Report are discussed below. Item 1. Revenue Recognition Wal-Mart Stores, Inc. reported record sales for fiscal year 2008. During this
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Chapter 5- Regulators Securities and Exchange Commission- protects investors and maintains integrity of the securities market- Oversees FASB and PCAOB FASB- Financial Accounting Standards Board- sets GAAP PCAOB- (public company oversight board) - sets auditing standards for CPA's Management of a company has responsibility for financial statements and related disclosures Board of Directors (audit committee) is responsible for ensuring that processes are in place for maintaining the integrity
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Perishable Inventory Theory: A Review Author(s): Steven Nahmias Source: Operations Research, Vol. 30, No. 4 (Jul. - Aug., 1982), pp. 680-708 Published by: INFORMS Stable URL: http://www.jstor.org/stable/170438 . Accessed: 04/05/2011 21:21 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission
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EXERCISE 5-11 (a) $1,440 ($1,500 – $60) (g) $7,700 ($290 + $7,410) (b) $1,570 (1,440 + $130) (h) $640 ($8,050 – $7,410) (c) $1,510 ($1,820 – $310) (i) $9,050 ($1,000 + $8,050) (d) $40 ($1,080 – $1,040) (j) $5,000 ($49,530 – $44,530 from (I)) (e) $190 ($1,230 – $1,040) (k) $1,300 ($43,590 – $42,290) (f) $120 ($1,350 – $1,230) (I) $44,530 ($42,290 + $2,240) PROBLEM 5-2A | June 1 Merchandise Inventory 960 Accounts
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January 31, 2015 (Saturday nearest January 31). From page 39, we are told that 95% of inventories in 2014 and 2013 were counted using a LIFO costing method, stating the lower of cost or market. However, Kroger’s fuel inventory levels are determined using the FIFO cost method. The company uses the Link-Chain, Dollar-Value LIFO method to calculate its LIFO charge. Also on page 39, we are told that Kroger mainly uses the straightline method for depreciation and amortization expense. Buildings
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mereka harus tahu ini ketika anggaran komprehensif diterima. Penggunaan LIFO Cadangan Sebuah perusahaan yang menggunakan LIFO biasanya mengungkapkan rekening cadangan LIFO dalam catatan di muka neraca. Jika akun LIFO cadangan tidak diungkapkan, biasanya ada beberapa indikasi dari jumlah yang mendekati biaya saat ini. Analisis tambahan menggunakan informasi persediaan tambahan ini dapat sangat signifikan ketika ada cadangan LIFO besar dan / atau perubahan substansial dalam cadangan. Likuiditas dan
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1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points : 20) 1. We have to close temporary accounts at the end of a period because when the temporary accounts are closed, it brings their balances back down to zero. 2. I would Debit Salary Expense and Credit to PayrollExpenses 12/31
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convergence projects, the level of the specific differences between IFRS and GAAP is decreasing. Yet significant differences still remain. For example: international financial reporting standard does not permit the use of LIFO as an inventory valuation whereas GAAP using LIFO and FIFO, IFRS allows the readjustment of assets in certain situations. “The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative
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