FIFO and LIFO accounting Essays & Research Papers

Best FIFO and LIFO accounting Essays

  • Lifo and Fifo in Accounting - 768 Words
    LIFO, last-in-first-out and FIFO, first-in-first-out the two most common inventory accounting methods. The choice of the method of inventory accounting by a small business can directly impact its balance sheet, income statement, and statement of cash flows. Not only do companies have to track the number of items sold, but they have to track the cost of each item. These two methods are ways in which they can do that. Each will have a different effect on their financial statements. How is...
    768 Words | 2 Pages
  • FIFO LIFO - 133 Words
    Q1: Assume Amazon .com began June with 10 units of inventory that cost a total of $190. During June, Amazon purchased and sold goods as follows: June 8 Purchase 30 units @ $20 June 14 Sale 25 units @ $40 June 22 purchase 20 unit @ $22 June 27 Sale 30 unit @ $40 Requirements: Under the FIFO and LIFO method 1. How much is Amazon’s cost of goods sold 2. How much is Amazon’s gross profit or loss 3. Journalize all Amazon’s inventory transactions for June. 4. Which method maximizes gross profit?...
    133 Words | 2 Pages
  • Lifo and Fifo - 3220 Words
    FIFO and LIFO accounting Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact newest physical object has been tracked and sold; this is just an inventory technique. LIFO stands for...
    3,220 Words | 12 Pages
  • Lifo and Fifo - 19588 Words
    LIFO VERSUS FIFO: UPDATING WHAT WE HAVE LEARNED Nicole Thorne Jenkins Doctoral Student in Accounting Morton Pincus Associate Professor of Accounting College of Business Administration The University of Iowa 108 PBAB Iowa City, IA 52242-1000 U.S.A. 319/335-0915 FAX 319/335-1956 morton-pincus@uiowa.edu September 1998 (version 1.2) LIFO VERSUS FIFO: UPDATING WHAT WE HAVE LEARNED 1.0 INTRODUCTION The statutory mandate in U.S. tax law that firms using the last-in first-out (LIFO)...
    19,588 Words | 55 Pages
  • All FIFO and LIFO accounting Essays

  • Fifo and Lifo Inventory Methods
    FIFO and LIFO Inventory Methods Tonia Green Accounting 211 – Financial Accounting Excelsior College FIFO and LIFO Inventory Methods This paper will provide a comparison of the accounting implications of valuing inventory under the First-in, First-out (FIFO) and Last-in, First-out (LIFO) methods. With very few exceptions, every business depends on an inventory to operate. Whether the business provides a service or sells products to its consumers, supplies and stock are required to...
    1,038 Words | 4 Pages
  • Fifo Lifo Avco - 470 Words
    KASHFIA TABASSUM AHMED ROLL: RH-42 SECTION A IBA BBA 2OTH BATCH ACCOUNTING SUBMITTED TO: MELITA MEHJABEEN SUBMITTED ON: 30/ 04/ 2012 FIFO [ FIRST IN FIRST OUT ] | ADVANTAGES | DISADVANTAGES | * If the business trades perishable goods with the use of FIFO it can avoid obsolescence of stock. * Closing stock valuation is done upon the most recent prices paid for stock which takes into account the rate of inflation. * The method is more realistic as the inventory...
    470 Words | 2 Pages
  • Accounting Problems on Specific Identification, FIFO, LIFO, and Weighted-Average
    CengageNOW | Assignments | View Page Accessibility Links Page Content. Main Menus. CengageNOW Preview Contact Technical Support Main Menus Site Actions Menu Site Navigation Menu Global Actions Menu Navigation Menu Courses Assignments Grades Study Tools View Assignment Results?. Get help with this page. Return to the Previous Page Section name: APA2121 - 09 Assignment name: Week 1 - Graded Assignment Take Details Assignment score: 44.17% Total Time...
    820 Words | 6 Pages
  • FIFO vs. LIFO: Strengths and Weaknesses
    DEPARTMENT OF ACCOUNTANCY UNIVERSITY OF ILLINOIS MEMORANDUM TO: Raluca Chiorean FROM: Section AE2 DATE: June 30, 2012 SUBJECT: Samuel’s Electronics Analysis INTRODUCTION In this memorandum, I’ll discuss strengths and weaknesses of using FIFO versus LIFO as the cost flow assumption in the accountant’s process of inventory valuation for financial statement reporting to a company’s external stakeholders. FIFO AND LIFO ANALYSIS As shown in the exhibit, because the price of LG TV was...
    314 Words | 2 Pages
  • Merrimack Tractors and Mowers, Inc: Lifo or Fifo
    Assumptions: Following assumptions are made for projecting income in 2008: • No drop in sales for 2008. • Selling and administrative expenses remain constant. • Increase in sales price by 15% as inventory price increased by more than 30% on average. Considering the following assumptions we calculate the income with LIFO and FIFO method. Inventory: Inventory 2007 2008 Units Per Unit Cost in $’000 Units Per Unit Cost in $’000 Beginning Inventory 15000 900 13500 15000...
    334 Words | 2 Pages
  • accounting - 715 Words
    Introduction In our coursework group assignment, our group had chosen the Apollo Food Holdings Berhad which is listed on the main board of the Bursa Kuala Lumpur. Apollo Food Holdings Berhad is a Malaysia-based company engaged in investment holding and provision of management services. Its own subsidiaries are Apollo Food Industries (M) Sdn Bhd, which is engaged in manufacturing and trading in many compound such as chocolates, chocolate confectionery products and cakes. The company is...
    715 Words | 3 Pages
  • accounting - 3000 Words
    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. 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 requisition form. The following information is available...
    3,000 Words | 18 Pages
  • LIFO arguments - 941 Words
    Student Name: ZHANG QIWEI Student ID Number: B414498 Arguments for and against LFO abolition in the US What are the arguments in favour of retaining LIFO? The arguments are being made on a number of different grounds so be clear to separate these out. What are the arguments in favour of the US abolishing LIFO? Should decisions on matters such as this be made on the basis of what is the most appropriate from an accounting perspective (i.e. principles) or from the perspective of the impact...
    941 Words | 3 Pages
  • Summary for LIFO Method - 418 Words
    Reasons why the LIFO method should not be repealed in the context of business tax reform In response to proposals by the Obama Administration to repeal the LIFO inventory method as part of the Administration’s budget proposals for Fiscal Years 2010-2013, the LIFO Coalition, which represents trade associations and business of every size and industry that employ the LIFO method, provided reasons why the LIFO method should not be repealed. The reasons for opposing the repeal of the LIFO...
    418 Words | 2 Pages
  • Accounting Solutions - 1303 Words
     Chapter 7 Chapter 7 Merchandise Inventory and Cost of Sales Questions 1. Incidental costs often are ignored in pricing an inventory because the expense of computing costs on such a precise basis usually outweighs any benefit gained from the extra accuracy. The principle of materiality permits such practices when the effect on the financial statements is not significant. 2. a. First items into the inventory are assumed to be the first items sold. b. Last items into the...
    1,303 Words | 25 Pages
  • Accounting Standards - 827 Words
    Case 3-6 Accounting Standards A. Given the income statement effects of LIFO versus FIFO, how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and Daimler-Benz? In other words, will inventory be reported amounts representing recent costs or older historical costs? In your opinion, which balance sheet amounts would be more useful to financial statement users in making decisions to buy or sell shares of a company’s stock? Inventory is an asset...
    827 Words | 3 Pages
  • Accounting Memo - 605 Words
     Accounting Memo Irene Emond BCOM/230 July 14, 2014 Jay Johnson Accounting Memo When creating a memo, the first thing to do is to know and identify your purpose and your audience. Failing to know your audience can result in misinterpretation, needing more clarification or being altogether ignored. Considering your audience is a must, as it falls under the same category as knowing the purpose of your memo. Upon reviewing the given example, I would suggest using the commonly accepted format....
    605 Words | 2 Pages
  • Hw Accounting - 737 Words
    AC210 EXAM 1 EEACH MULTIPLE QUESTION IS 5 POINTS PROBLEM IS 50 POINTS TOTAL POINTS=100 YOUR NAME___________Tyler Gaassett________________ Multiple Choice Questions *Highlight Your Answer Chapter 6 1-30. Operating income is: A. A measure of profitability after deducting cost of sales from net sales. B. A measure of profitability after deducting cost of sales and all expenses incurred in operating the business from net sales. C. A measure of liquidity after deducting...
    737 Words | 4 Pages
  • Cost Accounting - 2252 Words
    Assignment: Cost Accounting Applied By 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 any...
    2,252 Words | 7 Pages
  • Accounting (Inventory) - 464 Words
    1. INVENTORY A in X The inventory of Product A and data on purchases and sales for a two-month period in Company X follow. Company X closes its books at the end of each month. It uses a periodic inventory system. Apr. 1 10 17 30 Beginning inventory Purchase Sale Ending inventory 50 units 100 units 90 units 60 units @€204 @€220 May 2 14 22 30 31 Purchase Purchase Purchase Sale Ending inventory 100 units 50 units 60 units 200 units 70 units @€216...
    464 Words | 5 Pages
  • Analysis of the Lifo Inventory Valuation Method
    University of Connecticut DigitalCommons@UConn Honors Scholar Theses Honors Scholar Program 5-10-2009 Analysis of the LIFO inventory valuation method during the onset of IFRS Joseph Louis Romeo University of Connecticut - Storrs, joseph.romeo@uconn.edu Recommended Citation Romeo, Joseph Louis, "Analysis of the LIFO inventory valuation method during the onset of IFRS" (2009). Honors Scholar Theses. Paper 79. http://digitalcommons.uconn.edu/srhonors_theses/79 This Article is...
    8,343 Words | 26 Pages
  • bcom230 r3 accounting memo
     University of Phoenix Material Accounting Memo interoffice memo to: Accounting Team mate from: Andrew Accountant subject: LIFO FIFO explanation date: 6/10/2015 Team-mate We need to get together later this week—boss has requested we give her an overview of Last In/First Out (LIFO) versus First In/First Out (FIFO) as it might apply to our company. She needs the background info to present to our president and the board late this month. This is to help management make the decision of which...
    384 Words | 2 Pages
  • Caterpillar Accounting Case - 447 Words
     ALL ANSWERS ASSUME A TAX RATE OF 35% Even though the tax rate appears to be 1720 / 6725 = 25.57% In answering the following questions, please refer to the financial statements of Caterpillar Inc. (CAT) and the relevant Notes to these statements at the end of this write-up. 1. What could be the cause(s) for the shift in LIFO-based inventory from 70% at December 31, 2010 to 65% at December 31, 2011? A decrease in the replacement cost for...
    447 Words | 3 Pages
  • Accounting Changes and Error Analysis
    CHAPTER 22 CHAPTER 22 ACCOUNTING CHANGES AND ERROR ANALYSIS TRUE-FALSE—Conceptual Answer F T F T F T T T F T F F T F T T F F T T No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Description Change in accounting estimate. Errors in financial statements. Adoption of a new principle. Retrospective application of accounting principle. Reporting cumulative effect of change in principle. Disclosure requirements for a change in principle. Indirect effect of...
    12,497 Words | 48 Pages
  • Accounting Memo-Rewritten - 442 Words
    Accounting Department Memorandum To: Executive Vice President From: Yvonne Dixon and Teammates Subject: Last In/First Out (LIFO) versus First In/First Out (FIFO) Date: February 13, 2012 Executive Vice President, Late last week our team had a team meeting to discuss LIFO versus FIFO methods of inventory for the Cost of Goods Sold (COGS) as to our company needs. This was a very lengthy and well communicated process for our team. I feel that we as a team have worked to give you the...
    442 Words | 2 Pages
  • Financial Accounting 1 - 4818 Words
    Multiple Choice: 1. In general terms, financial assets appear in the balance sheet at: a. Face value b. Current value c. Cost d. Estimated future sales value 2. Which of the following practices contributes to efficient cash management? a. Never borrow money – maintain a cash balance sufficient to make all necessary payments. b. Record all cash receipts and cash payments at the end of the month when reconciling the bank...
    4,818 Words | 28 Pages
  • Accounting Changes and Error Analysis
    ACCOUNTING CHANGES AND ERROR ANALYSIS TRUE-FALSeConceptual Answer No. Description F 1. Change in accounting estimate. T 2. Errors in financial statements. F 3. Adoption of a new principle. T 4. Retrospective application of accounting principle. F 5. Reporting cumulative effect of change in principle. T 6. Disclosure requirements for a change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting...
    10,747 Words | 3 Pages
  • 3 Basic Inventory Techniques or Cost Flow Assumptions: Fifo (Stands for First-in, First-Out), Lifo (Stands for Last-in, First-Out) and Wavg (Stands for Weighted – Average)
    4.3 | As a management accounting compare and contrast the above methods and recommend suitable method to achieve the organizational objective | P2.3,M3.3,D1.1 | Assignment | One of the most important knowledge about accounting is 3 basic inventory techniques or cost flow assumptions: FIFO (stands for first-in, first-out), LIFO (stands for last-in, first-out) and WAVG (stands for weighted – average). In this article, I just want to focus on FIFO and LIFO. Let's review these concepts: FIFO...
    573 Words | 2 Pages
  • Reflection Paper Accounting - 1289 Words
    Reflection paper Accounting to me is challenge as a whole; it is a good subject to learn because accounting knowledge is always in demand. So far, I am on a good path learning the basics of accounting. I’ve learned how accounting affects business and how it allows organizations to identify cash inflows and outflows. This accounting course provided me a great opportunity to understand the various important aspects of accounting that I believe will be helpful in my future practical life. I need...
    1,289 Words | 4 Pages
  • cost accounting reviewer - 14992 Words
     11. A total variance is best defined as the difference between total a. actual cost and total cost applied for the standard output of the period. b. standard cost and total cost applied to production. c. actual cost and total standard cost of the actual input of the period. d. actual cost and total cost applied for the actual output of the period. 12. The term “standard hours allowed” measures a. budgeted output at actual hours. b. budgeted output at standard hours. c....
    14,992 Words | 202 Pages
  • Intermediate Accounting Ch 8
    CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Inventory accounts; determining quantities, costs, and items to be included in inventory; the inventory equation; balance sheet disclosure. Perpetual vs. periodic. Recording of discounts. Inventory errors. Flow assumptions. 10, 11 7 12, 13, 16, 18, 20 4 5, 6, 7 Questions 1, 2, 3, 4, 5, 6, 8, 9 Brief Exercises 1, 3 Exercises 1, 2, 3, 4, 5, 6, 10 Problems 1, 2, 3 Concepts for Analysis...
    18,170 Words | 64 Pages
  • Chapter 6 Accounting - 479 Words
    Weighted average cost flow assumption: Weighted average assumes that cost flow at an average of the costs available. Costs of goods sold and Ending inventory: -Cost of goods sold + ending inventory = the total goods available for sale. -Cost of goods available for sale must be allocated between cost of goods sold and ending inventory. FIFO cost flow assumption: The cost of items purchased earliest are the costs that will be transferred first to cost of goods sold on the income statement. LIFO...
    479 Words | 2 Pages
  • Introduction and Definition of Accounting Terms
    Introduction Most of the companies that are dealing with physical product trading businesses will realize the importance of inventories for their business. The reason why the inventories play an important role in business is that for those businessmen, the inventory is the key to generate revenue for their business and also inventory can be counted as major investment businesses in their daily routine. Thus, the inventory should be managed under proper inventories valuation method which is...
    687 Words | 2 Pages
  • Management Accounting Report Cost Classification
    | Jupiter LTD. |1 | | |Email: jupiter@ltd.com | JUPITER LIMITED Management Accounting Report Prepared for: Jupiter Ltd. Chief executive officer Prepared by: Date: April 03 2012 TABLE OF CONTENTS...
    2,920 Words | 15 Pages
  • Accounting - Decision Case 5-10
    Decision Case 5-10 a). The CEO is mainly concerned with reporting the highest amount of income possible. Thus the CEO will be pleased if the company uses the FIFO method. This method recognizes as cost of goods sold the oldest costs, and because prices are rising, the costs charged to cost of goods sold will be less than if LIFO is used. b). It would be difficult to state absolutely which method is truly in the best interest of the stockholders, as FIFO results in lower COGS on the income...
    404 Words | 2 Pages
  • ACC 206 Week 5 Final Paper Cost Accounting
    This document comprises ACC 206 Week 5 Final Paper Cost Accounting Principles of Accounting II Cost Accounting Accounting is the accumulation and aggregation of info for decision makers including administrators, traders, authorities, loan providers, as well as the general public. Accounting systems impact behavior and administration and have effects across divisions, companies, and even nations. This report will provide the reader a knowledge regarding cost accounting. This report...
    673 Words | 3 Pages
  • Chapter 7 Financial Accounting Reporting and Interpreting Cost of Goods Sold and Inventory Solution
    Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory ANSWERS TO QUESTIONS 1. Inventory often is one of the largest amounts listed under assets on the balance sheet which means that it represents a significant amount of the resources available to the business. The inventory may be excessive in amount, which is a needless waste of resources; alternatively it may be too low, which may result in lost sales. Therefore, for internal users inventory control is very...
    10,337 Words | 57 Pages
  • Choose a Current International Accounting Standard (Ias) or International Financial Reporting Standard (Ifrs). Briefly Summarise Its Provisions and Assess Whether the Standard Can Be Considered to Be ‘Principles-Based’ or ‘Rules-Based’, E...
    Introduction There are mainly two accounting standards: principle-based and rule-based in the accounting system. This paperwork will chose one regulation in International Accounting Standard, which is covered the regulations on inventory. After the brief summary of IAS 2, there will be a discuss about the IAS 2’s characteristics. Summary of IAS 2 In summary, the objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance not only for determining the...
    1,172 Words | 4 Pages
  • Lewis Corp 6-2
    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...
    733 Words | 4 Pages
  • Merrimack Tractors - 849 Words
    Merrimack Tractors & mowers, Inc. Course: Managerial Accounting & Control -1 Batch: PGP (2011 – 2013) Submitted on: 5th September, 2011 Executive Summary Merrimack Tractors and Mowers, Inc was a major regional manufacturer and seller of large commercial grass mowers based on a design developed by the grandfather of Ricardo Martino. The company’s major competitors were John Deere, The Toro Company, Simplicity, and Husqvarna which were much older with extensive lines of lawn care and...
    849 Words | 4 Pages
  • Summit Study Case Q2
    Summit Distributors was in danger of violating loan covenants because of slow economic activity and forecasted losses and was faced with a choice. Changing the inventory valuation method from LIFO to FIFO would avoid default but would require higher future income taxes. Not changing could mean default on covenants, renegotiating loan terms at less favorable interest rates, or possible bankruptcy. Therefor even if we assumed no cash- flow consequences associated with the change, the answer...
    502 Words | 2 Pages
  • financial reporting problems at molex
    Marrickmack Tractors and Mowers finds itself in a situation where products manufacturing cost are increase faster than competitors cost. The company president and company controller have discussed this problem and the controller has mentioned this idea that if the company changed from LIFO TO FIFO it might be possible to maintain earning growth in 2008. He prepaid a memo to president explain how inventory flow assumption work and provides per forma income statement that show for one product...
    286 Words | 1 Page
  • ACCT 210 Chapter 8 Assignment
    Wael H. Brome 201403364 Assignment Chapter 8 Exercise 8.7 a) Weighted average cost $79.60 (20 units @ $3.98). (Weighted average cost = $438/110 units = $3.98) b) FIFO, $99.00 (19 units @ $5.00 + 1 unit @ $4.00). c) Only the FIFO method results in the same ending inventory valuation in both periodic and perpetual costing environments. Under the weighted average cost method, periodic and perpetual systems usually result in different valuations due to the timing of inventory purchases and sales....
    569 Words | 7 Pages
  • Week 4 Discussion - 618 Words
    There are various methods in the accounting world used to keep track of inventory and cost of goods used. FIFO stands for first in first out method which is the opposite of LIFO, last in first out. Both methods have disadvantages and advantages when it comes to tax time or preparing a financial statement for the investors. As the name suggest, FIFO will account inventory that came in first will be sold first. This method is effective for companies selling products with expiration dates....
    618 Words | 2 Pages
  • Current Office Supplies Inventory Management Practices of Various Offices in Holy Name University and It's Advantages and Disadvantages
    CHAPTER 1 INTRODUCTION THE PROBLEM AND ITS SCOPE Rationale Zipkin (2000), states that every one of us deals with dozens of inventories daily without thinking too hard about them. At home, we stock supplies of foods, drinks, soap, and many other items, because they make life easier than it would be otherwise. During times of calamities when there is no electricity and gas for cooking, one's stock of canned goods and other ready to eat foods are of great help. Olivario (1998) said...
    1,801 Words | 6 Pages
  • IFRS vs. GAAP - 1264 Words
    MGT 6030 IFRS vs. US GAAP assignment In this assignment, I will talk about four ways in which financial reporting can differ between US GAAP and IFRS. The first issue is the way in which inventory is carried from period to period. Another is the revaluation of Property, Plant, and Equipment, which is allowed under IFRS. US GAAP does not allow such flexibility. The next difference I found interesting was that US GAAP has specific guidelines surrounding when to expense Advertising Costs. Given...
    1,264 Words | 3 Pages
  • Determining the Cost of Materials - 517 Words
    DETERMINING THE COST OF MATERIALS An important area of materials accounting is the costing of materials requisitioned from the storeroom for factory use. The unit cost of incoming materials is known at the time of purchase. The date of each purchase is also known, but the materials on hand typically include items purchased on different dates and at different prices. Items that look alike usually are commingled in the storeroom. As a result, it may be difficult or impossible to identify an...
    517 Words | 2 Pages
  • FOA Assignment completed - 2974 Words
    Plagiarism Statement Declaration Form Semester : 2 Course Code and Title :ABFA 1023 FUNDAMENTALS OF ACCOUNTING Declaration We confirm that we have read and shall comply with all the terms and condition of TAR College’s plagiarism policy. We declare that this assignment is free from all forms of plagiarism and for all intents and purposes is our own properly derived work. We further confirm that the same work, where appropriate, has been verified by antiplagiarism Software...
    2,974 Words | 13 Pages
  • Case 07-2 - 683 Words
    Case 07-2: Western Aluminum Introduction Western Aluminum, INC expanded its operations through the acquisition of Smelter. By the end of 2007, Smelter is projected to produce 30% of Western Aluminum’s inventory. Western Aluminum evaluated its current practices in comparison to Smelters current FIFO Inventory management system and issued a proposal to change their inventory valuation method from LIFO to FIFO. Factors to Consider Western Aluminum addressed multiple topics to validate...
    683 Words | 3 Pages
  • Topps Company Inventory Evaluation
    Topps Company Inventory Evaluation Michelle Rowley ACC 281 Ms. LaKeitha Givens August 5, 2013 Topps Company Inventory Evaluation Topps Company’s runs two business units, confectionery and entertainment (Edmonds, Olds, McNair, & Tsay, 2010). Their financial situation changed from the year 2004 to the year 2006. Their focus changed in 2006 with 80% of the employees reporting profit and loss to someone compared to 20% reporting before the change and also started performance tracking...
    844 Words | 3 Pages
  • lalilu - 720 Words
    ABFA1023 FUNDAMENTALS OF ACCOUNTING 1 Revision on Inventory Adjustments New practice question 2 questions:  Does the good belong to us? o If yes, include in our closing inventory o If no, exclude from our closing inventory Axis Trading Sdn. Bhd. is preparing their financial statements for the year ended 31 December 2010. Physical inventory count was done on 27 December 2010. The inventory count sheets totalled RM212,188. The draft Statement of Profit or Loss showed a net...
    720 Words | 5 Pages
  • Cost accoutning - 12348 Words
    Chapter 6--Process Costing Student: ___________________________________________________________________________ 1. A process is a series of activities or operations, which are linked to perform a specific objective. True False 2. The cost flows for a process-costing system are totally different from those of a job order costing system. True False 3. Process systems are characterized by a larger number of homogeneous products passing through a series of processes. ...
    12,348 Words | 157 Pages
  • Memo Review - 488 Words
    Occasionally a person working with a department at a company is required to pass on information to another department or a supervisor. Because the executive vice president has requested information on inventory valuations, it is necessary to make this memo professional and accurate. The use of information must be explained to the company officers so it should be considered that they are not aware of the jargon used by accountants. Summarized below are the changes in the interoffice memo...
    488 Words | 2 Pages
  • Perpetual Inventory Record - 441 Words
    PA-5B A 25th Century Electronic Center began December with 94 units of inventory that cost $72 each. During December, the store made the following purchases: 12/3: 20 @ 77 12/12: 52 @ 79 12/18: 79 @ 82 25th Century uses the periodic inventory system, and the physical count at December 31 indicates that 112 units of inventory are on hand. Requirements: 1. Determine the ending inventory and cost-of-goods-sold amounts for the December financial statements under the average cost, FIFO, and...
    441 Words | 2 Pages
  • METHODS OF PRICING MATERIALS ISSUESQDESCRIBE THE
    METHODS OF PRICING MATERIALS ISSUES Q.DESCRIBE THE DIFFERENT METHODS OF PRICING MATERIAL ISSUES (OR) WRITE SHORT NOTES ON FIFO, LIFO AND WEIGHTED AVERAGE/SIMPLE AVERAGE. (10 Marks) When materials are issued for any production work or any job, they have to be valued in the costing department, if materials are purchased for any particular job, the total cost of the materials can be charged to that job. But, generally raw materials are purchased in anticipation and issued whenever they are...
    2,255 Words | 14 Pages
  • ACCT 220 Chapter 6 Fun Quiz
    UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE PRINCIPLES OF ACCOUNTING I ACCT220 FUN QUIZ SIX: CHAPTER SIX I. Multiple Choice. Select the best lettered answer for the number question or best lettered completion for the numbered partial statement. Record the letter next to the number. 1. _____ Fetherston Company's goods in transit at December 31 include: sales made purchases made (1) FOB destination (3) FOB destination (2) FOB shipping point (4) FOB shipping point Which items...
    663 Words | 5 Pages
  • Nash-Finch Inventory Analysis
    Nash-Finch Company and Subsidiaries Inventory Analysis ACCT 6610/5610 1. Download a copy of Nash-Finch Company and Subsidiaries 2012 10-K filed with the SEC on February 28, 2013. You do not need to hand the 10-K in with your assignment, but you will refer to it in answering the questions below. 2. What does Nash-Finch do? Nash-Finch was established in 1885 and incorporated in 1921. They are the largest food distributor servicing military commissaries and exchanges in the US (in...
    1,034 Words | 5 Pages
  • Ac552 W3 Lecture Process Costing Quiz
    Use the following information for questions 1--10. Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in the Cutting Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Data for the Cutting Department for the month of February 2005 follow: Work in process, January 31-- 50,000 units 100%...
    706 Words | 4 Pages
  • Process Costing - 2145 Words
    Process Costing Characteristics of Process Manufacturing • Since each product within a product line passing through the processes would receive similar ‘‘doses’’ of materials, labor, and overhead, costs are accumulated by process. • Process costing works well whenever relatively homogeneous products pass through a series of processes and receive similar amounts of manufacturing costs Units are homogeneous and subjected to the same operations for a given process and each unit produced in a...
    2,145 Words | 21 Pages
  • Art History - 2398 Words
    THE ANSWER KEY IS AT THE END OF THIS DOCUMENT 1. Teel Distribution Co. has determined its December 31, 2007 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows: Estimated selling price | $255,000 | Estimated cost of disposal/completion | 10,000 | Normal profit margin | 30,000 | Current replacement cost | 225,000 | Teel records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2007, the loss that Teel...
    2,398 Words | 11 Pages
  • Harnischfeger Case - 1207 Words
    Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. • Based on the financial statements in 1984 Harnischfeger made changes from the previous year, the corporation computed depreciation expenses on plants, machinery and equipment using the straight-line method. Prior...
    1,207 Words | 4 Pages
  • Memorandum c7 15 - 168 Words
    Memorandum To: President, Fenimore Manufacturing Company From: Name, Accounting Advisor Date: 11/10/14 Re: Average Cost Method vs. Cost of Goods Sold and Inventory After researching the issue of which method of accounting for manufacturing cost variances is consistent with GAAP, my findings, ASC 330-10-30-12, Standard costs are acceptable if adjusted at reasonable intervals to reflect current conditions so that at the balance-sheet date standard costs reasonably approximate costs computed under...
    168 Words | 1 Page
  • Balance Sheet and Inventory - 6751 Words
    Chapter 4 Discussion Questions |4-1. |What are the basic benefits and purposes of developing pro forma statements and a cash budget? | | | | | |The pro-forma financial statements and cash budget enable the firm to determine its future level of asset needs and the| | |associated...
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  • F.I.F.O. vs L.I.F.O. - 348 Words
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