during the period. Cost of goods sold is the amount of goods available for sale less the ending inventory. 5. Beginning inventory is the stock of goods on hand (in inventory) at the start of the accounting period. Ending inventory is the stock of goods on hand (in inventory) at the end of the accounting period. The ending inventory of one period automatically becomes the beginning inventory of the next period. 6. (a) Average cost–This inventory costing method in a periodic inventory
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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 best
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3217 DECEMBER 9‚ 2008 WILLIAM E. BRUNS SHARON M. BRUNS SUSAN HARMELING Merrimack Tractors and Mowers‚ Inc.: LIFO or FIFO? Ricardo “Rick” Martino‚ president and chief operating officer of Merrimack Tractors and Mowers‚ Inc.‚ of Nashua‚ New Hampshire‚ felt that his job had grown much more complicated during 2007 and 2008. Merrimack was a major regional manufacturer and seller of large commercial grass mowers based on a design developed by his grandfather in the years after World War II
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position warrants an equally large need for regulation to ensure that users of the financial statements are given a clear picture of the state the organisation is in. The Australian Accounting Standards Board (AASB) is responsible for developing the standards that govern the way reporting entities disclose their accounting figures. Despite much international debate‚ the regulation of inventories has changed over the years‚ and problems that appear in even the current regulations make it likely that
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frst-out inventory method of accounting (LIFO). In general‚ to use LIFO for federal income tax purposes‚ taxpayers must also use LIFO for fnancial reporting purposes (herein referred to as the LIFO conformity requirement). The use of LIFO for fnancial reporting purposes is not permitted under International Financial Reporting Standards as promulgated by the International Accounting Standards Board (IFRS). As a result‚ a conversion from US generally accepted accounting principles (GAAP) to IFRS likely
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Dow Chemical Accounting Homework Dow Chemical Company is a manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services. Its product lines include chemicals‚ advanced materials‚ agro-sciences and plastics businesses. Attached are the excerpts from Dow Chemical’s Annual report for 2012. Based on the information in the financial statements and footnotes‚ please‚ answer the questions below. Assume a tax rate of 35%. 1. Which cost flow assumptions
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other inventory systems such as FIFO and LIFO. FIFO means‚ first-in-first out. The primary purpose of FIFO inventory management practice in retail stores is to rotate stock so that it remains fresh‚ new‚ and in good condition for the consumer. This practice reduces returns and inventory write downs Conversely‚ LIFO means last in first out.In terms of how a company reports their financials‚ LIFO and FIFO have different advantages and disadvantages. For instance‚ with FIFO‚ as long as a company ’s good
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September 22 1.) Restate Nuware’s 2013 earnings as if the company had used the same accounting methods and assumptions as R.P. Stuart. Your answer should focus on‚ but not necessarily be limited to‚ Nuware’s accounting for investments‚ receivables‚ inventory‚ and PP&E. From the discussions in Nuware’s notes and the comparison with RP.Stuart’s financial statement‚ we noticed that there are several different accounting policies being adopted‚ including receivables‚ inventory‚ advertisement cost and
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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 adopting FIFO would allow Merrimack to report higher income in 2008 than it did in 2007 but higher income taxes would have to be paid. First Objective: The first objective in this case is to exposed students to different methods of inventory valuation. Students must know about LIFO and
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encompasses both formal and informal communications throughout an organization‚ including communications to employees and with or from employees to upper management. This discussion reviews the basics of effective cost allocation‚ activity-based accounting and management‚ inventory costing methods‚ and methods for measuring results within the Johnson & Johnson. Communication is a vital management component to any organization. Whether the purpose is to merely update employees on new policies
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