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 Balance 1
Free FIFO and LIFO accounting Inventory Generally Accepted Accounting Principles
Units Unit Cost Total Cost From the Beginning Inventory 1840.00 20.00 36800.00 From the first purchase 600.00 20.25 12150.00 From the second purchase 380.00 21.00 7980.00 2820.00 56930.00 From the Second purchase 420.00 21.00 8820.00 From the third purchase 400.00 21.25 8500.00 From the second purchase 200.00 21.50 4300.00 1020.00 21.20 21620.00 Units Unit Cost Total Cost From the Beginning Inventory 1020.00 21.20 21624.00 From the first purchase 700.00 21.50 15050.00 From the second
Free FIFO and LIFO accounting Inventory
What should the controller of Lexsteel do in order to address the potential problems within the corporation? • The controller became aware of the potential problems with the accounts payable system because of the discussion made with the external auditors. • Each branch manager is given the authority to order materials and issue emergency purchase orders directly to the vendors. • Physical counts of raw materials are not performed since there is a cost-effective computerized perpetual inventory
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Problem 6-1A 1. Principle violated- Divide responsibilities for related transactions and separate recordkeeping from custody of assets. The business will need to separate the duties of Ms. Flat. She is currently recording all cash receipts and posting the payments to the customer accounts. This leaves much room for error and fraud. Ms. Flat also has control or access over all cash receipts as well as being responsible for posting the payment to accounts. 2. Principle violated- Establish Responsibilities
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Chapter 6 (Case 6-1 CHINA PETROLEUM AND CHEMICAL CORPORATION) 1.The net profit figure reported under PRC GAAP is RMB 19‚011 million. This is RMB 2‚592 million lower than the amount under IFRS‚ and RMB 6‚566 million lower than the amount under U.S. GAAP. The net profit figure of RMB 19‚011 reported under PRC GAAP was increased to RMB 21‚593 under IFRS. The increase of RMB 2‚582 under IFRS was due to the following reasons: Dep. and disposal of oil and gas properties RMB3‚044 Acquisition of subsidiaries
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Case 6-2 Birch Paper Company Internal Environment • Medium sized‚ partly integrated paper company • Portion of paperboard output was converted into corrugated boxes by the Thompson Division • Four producing divisions and a timberland division to supply part of company’s pulp requirements • Divisions judge independently on basis of profits and return on investments • Decentralization successful‚ company’s profits and competitive position improved External Environment Customer/Supplier
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strategic management to a small business. 2. Explain why and how a small business must create a competitive advantage in the market. 3. Develop a strategic plan for a business using the nine steps in the strategic planning process. 4. Discuss the characteristics of three basic strategies: low cost‚ differentiation‚ and focus‚ and know when to employ them. 5. Understand the importance of controls such as the balanced scorecard in the planning process. Part 2: Class Instruction Introduction
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How do adult Hispanics with newly diagnosed type 2 diabetes perceive barriers to implementing dietary and lifestyles changes to reduce A1C levels in the first 3 months after diagnosis? P- (Population) adult Hispanics with newly diagnosed type 2 diabetes. I- (issue of interest) recognized stressors and barriers to implementing dietary and Healthy lifestyle changes. C- (Comparison group) No appropriate comparison group of interest. O- (Outcome) reduced A1C levels. T- (Time frame) 3 months after initial
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McGraw-Hill/Irwin Retailing Management‚ McGraw-Hill/Irwin Retailing Management‚ Computer Source: 44 outlets 1-3 1-4 Chapter 1 Introduction to the World of Retailing McGraw-Hill/Irwin Retailing Management‚ 1-6 The World of Retailing Introduction to Retailing Types of Retailers Multi-Channel Retailing Customer Buying Behavior 1-7 Questions ■ ■ ■ ■ What is retailing? What do retailers do? Why is retailing important in our society? What career
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October 9‚ 2013 To: Ms. Dana Donnley‚ Director of Employee Communication From: Mr. X‚ Employee Communication Manager Subject: Suggestions to persuade employees to participate in the wellness program I believe that we need to address three very important challenges in order to persuade all the employees to participate in our wellness program. First‚ making the employees understand that this program is entirely for their benefit‚ second‚ convincing them that the results of the physical
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