13. On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2021 through 2023 are as follows: Date Ending Inventory at Year-End Costs Cost Index 12/31/2021 $ 436,800 1.04 12/31/2022 487,200 1.12 12/31/2023 518,500 1.22 Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.
Q: On January 1, Martinez Inc. issued P 4,000,000, 11% bonds for P 4,260,000. The market rate of intere...
A: Working:
Q: Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares...
A: Rule: If any asset is purchased in exchange of any item, then it should be recognized at the fair va...
Q: bba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity...
A: Solution Concept When the fair value exceeds the carrying amount The asset is revalued and the amoun...
Q: MCD Corp. spent a total of 810,000 actual variable cost and 290,000 and cost for the month of May. S...
A: Spending variance = $60000 U Volume variance = $260000 U
Q: Differentiate primary markets from secondary markets and money markets from capital markets.
A: The Capital market contains two interdependent segments that are Primary market and Secondary mark...
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
A: The incremental cost is also known as marginal cost. It is an additional cost incurred due to an inc...
Q: Required: Using the amortization schedule provided above, record the entry to retire the bonds on Oc...
A: If bonds are retired before maturity, there may be gain or loss on retirement. If the bond is retire...
Q: our years of employment, John was able to save P250,000 after he had invested on purchasing a motorc...
A: There is need of financial planning for the future and must invest with care and considering the all...
Q: Part 1 What is a "brand"? Why is it imporțant for companies to establish a brand identity? Part 2 Ho...
A: Brand: A brand is an intangible marketing or commercial idea that allows people to recognize a firm,...
Q: Problem 4: Ocean Company recently acquired several items of property, plant and equipment. The tran...
A: 1. Building costcash. P1000000 Value of shares P6000000 ...
Q: tée reports the following items: cash in bank $17,500; payroll bank account $6,000; cas s consisting...
A: Cash and Cash Equivalents include cash in hand ,cash at bank and all the investments that are short ...
Q: What is the value of each preference share using the zero-growth model? 2. What is the importance of...
A: Value of Preference Share: - It is also called the fair value of Preference Share. It is computer to...
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below: ...
A: Net Operating Income Net operating income refers to the income generated from the day-to-day operati...
Q: artinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and ...
A: The question is based on the concept of Cost Accounting. Fixed cost is the cost that remains the sam...
Q: Huskey Mining Corporation issued bonds with a par value of $90,000 on January 1, 2020. The annual co...
A: Discount on bonds payable is difference of par value of bond and issue price of bonds.
Q: Barth, Holt, and Tran have been partners of a ski, snowboard, and mountain bike shop in Whistler, BC...
A: The journal entries are prepared to keep the record of day to day transactions of the business. The...
Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for P5,000,00...
A: Working notes :- Cost of investment in 2021 Partic...
Q: Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always sh...
A: Liquidation of Partnership - Liquidation of partnership is the process of selling all the assets ava...
Q: Reporting Net Cash Flow from Operating Activities The following information is available for Cornel...
A: Net Cash Flow from Operating Activities: When a company's cash flow statement is prepared, the part ...
Q: Purchased tools worth $3,500 by paying $2,000 in cash and the remaining on account. Transaction Anal...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected t...
A: Amortization refers to systematic allocation of the cost of intangible assets throughout it's useful...
Q: a. Calculate the depreciable cost of the warehouse. b. Calculate the annual depreciation expense tha...
A: a. Depreciable Cost = Cost - Salvage Value b. Annual Depreciation = Total Depreciable Cost / Useful ...
Q: Which of the following statements is true when the straight-line method is used to compute amortizat...
A: Using Straight line method , Amortization Expense = Amortization cost / Asset's estimated useful li...
Q: Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, th...
A: When the selling price is the asset is more than its Carrying amount or fair value , then it leads t...
Q: At the beginning of fiscal 2010 Phoebe Bridgers INC had retained earnings of USD1,000,000 and at the...
A: The question is based on the concept of Financial Accounting. The profit earned during the year is t...
Q: Purchased tools worth $3,500 by paying $2,000 in cash and the remaining on account. Transaction Anal...
A: The transactions in the business affects two or more accounts of the business.
Q: Flower Garden Corporation has a delinquent subscription for 4,000 shares of its P20 par value shares...
A: Delinquent subscription: If the subscribers fail to pay the total amount of the subscription on the ...
Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the $25...
A: W2 wages shall be deducted from business income to arrrve at Gross business income from Just delicio...
Q: The Playa Company has the following information in its records. Certain data have been intentionally...
A: Lets understand the basics. For filling up the blanks we need to use some formulas which are as belo...
Q: Date Account / Remarks Dr. Cr. 1 6/2/19 Cash 20,000 Sales 20,000 # to record cash sales 2 6/3/19 Acc...
A: Cash flow statement is a financial statement that accounts for all the cash inflows and cash outflow...
Q: What elements of the accounting equation is/are affected by the following transactions? Fill in the ...
A:
Q: On December 31, 2015, Yuna Inc., a publicly traded company, that manufactures and sells equipment, s...
A: A .Journal Entries for the years 2015 - 2017
Q: Per Unit $ 32.00 19.00 $ 13.00 Total Sales (7,200 units) Variable expenses $ 230,400 136,800 Contrib...
A: Ans. for Question No. 2. Revised Net Operating Income $ 37,350
Q: Required information [The following information applies to the questions displayed below.] Intercont...
A: Replacement cost = Required quantity ( in units ) * Replacement cost per unit Cost of order = Quanti...
Q: Slow Running Shoes uses the Aging of receivables method to account for uncollectible accounts. o T...
A: Accounts Receivable - Accounts Receivables are the amount which is due but not paid by the customer....
Q: Sprite makes one of its products by way of three separate stages. Details of production for the mont...
A:
Q: Newman Quincy wants to withdraw $32,700 each year for 14 years from a fund that earns 10% interest. ...
A: 1. How much must he invest today if the first withdrawal is at year-end? Year Cash flows pvf @ 1...
Q: Distinguish between 'Dissolution of Partnership' and 'Dissolution of Firm' on the basis of (i) Effec...
A: Hi student Since there are multiple questions, we will answer only first question.
Q: The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute ...
A: Days in Inventory = 365 x Average Inventory / Cost of Goods Sold Average Inventory = (Beginning Inve...
Q: Ignore first question and answer only 2
A: Lets understand the basics. For calculating revised net operating income per month, we need to use b...
Q: YG Company has 5,000 shares of 6%, USD100 par value, noncumulative preferred stock and 20,000 shares...
A: It is pertinent to note that preference shares have hybrid characteristics of both debt and equity. ...
Q: the conceptual framework includes which constraint a.prudence b. conservatism c. cost d all of t...
A: IASB is the accounting standard body which is known as International Accounting Standards Board. Con...
Q: Parent own 100% of Sub. On the open market parent bought all bonds of the Sub for Sa0o,000 on Jamuar...
A: In this question ,we ae given with Interest Expense = 40,000Interest Revenue = 37,000Explanation:Int...
Q: Required information [The following information applies to the questions displayed below.] FindMe In...
A: Cost of goods sold = Number of units sold * Cost price Sales revenue = Number of goods sold * Sale p...
Q: Activity 1. Listed below are seven business transactions of EMF Company during its first month of op...
A: The accounting equation states that total assets are equal to total liabilities and shareholders' eq...
Q: The trial balance of Pina Colada Ltd. at December 31, 2020, follows: Debits Credits Cash $...
A: A balance sheet is a representation of an individual's personal or corporation's financial balances ...
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
A: Fixed manufacturing cost will not change even though their is a change in production. Fixed manufac...
Q: Bravo Company has the following information at month-end: Sales - P100,000 Sales Returns and Allowan...
A: Net sales = Gross sales -Sales returns and allowances - Sales Discounts
Q: The number of units of one good that trade for one unit of alternative goods can be determined most ...
A: Product or Goods: In everyday speech, the terms "product" and "good" are interchangeable. When compa...
Q: Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a ...
A: Salary per week of salaried employee = salary mer month /4 salary per hour of salaried employee = sa...
13.
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2021 through 2023 are as follows:
Date | Ending Inventory at Year-End Costs |
Cost Index | |||
12/31/2021 | $ | 436,800 | 1.04 | ||
12/31/2022 | 487,200 | 1.12 | |||
12/31/2023 | 518,500 | 1.22 | |||
Required:
Calculate Taylor's ending inventory for 2021, 2022, and 2023.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $265,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31. 2024 2025 2026 2027 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 336,600 427,350 405,000 395,200 1.02 1.11 1.08 1.04 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.In presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is A. P2.50 B. P3.00 C. P3.50 D. P4.50Ret Exercise 8-27 (Algo) Dollar-value LIFO (LO8-8] Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Ending Inventory at Year Year-End Costs Base Year Costs 2022 2023 $233,100 302,450 303,600 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) X Answer is not complete. Inventory Layers Converted to Base Year Cost Inventory DVL Cost Inventory Layers Converted to Cost Inventory at Year-End Cost Year- End Cost Index Inventory Layers at Base Year Inventory Layers at Base Year Cost Year- Inventory Layers Converted to Cost Date End Cost Index Cost 12/31/2021 220,000 X 273,000 X I$ 1 220,000 X Base IS 220,000 8 220,000 S 220,000 12/31/2022 1.05 $ 260,000 Base…
- Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: Required:1. Assume the inventory that existed at the end of each year wassold in the subsequent year. Prepare journal entries to record thelower of cost or net realizable value for each of the followingalternatives:a. allowance method, perpetual inventory systemb. direct method, perpetual inventory system2. Next Level Explain any differences in inventory valuation andincome between the two methodsD Company began operations in 2018 and determined its ending inventory at cost and at a LCNRVat December 31,2018 and December 31, 2019. This information is presented below.Cost NRV12/31/18 520,000 485,00012/31/19 615,000 585,000Required1. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the costof goods sold method.2. Prepare journal entries required at December 31,2018 and December 31, 2019, assumingthat the inventory is recorded at LCNRV, using a perpetual inventory system and the lossmethod.3. Which of the two methods above provides the higher income in each year ?Problem 11-9 (AICPA Adapted) Narra Company used the FIFO cost flow method i measuring raw material inventory. However, weighted average costs are used in valuing annual incremental layers. Composition of the December 31, 2020 inventory: Weighted average unit cost Total cost Units Base year inventory Incremental layer Incremental layer 2018 2019 9,000 3,000 2,000 100 110 900,000 330,000 250,000 2020 125 14,000 1,480,000 Inventory, December 31, 2020 2021 Mar. 1 4,800 units were purchased at a unit cost of P135 for P648,000. Sept. 1 7,200 units were purchased at a unit cost of P140 for P1,008,000. A total of 15,000 units were used for production in 2021. 2022 Jan. 10 7,500 units were purchased at a unit cost of P145 for P1,087,500. May 10 5,500 units were purchased at a unit cost of P155 for P852,500. Dec. 29 7,000 units were purchased at a unit cost of P160 for P1,120,000. A total 16,000 units were used for production during 2022. Required: 1. Inventory December 31, 2021 2. Raw materials…
- Metlock Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $337,190 $311,120 12/31/21 371,550 349,640 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No…The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?Blue Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $315,690 $293,860 12/31/21 437,360 419,880 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount 12/31/21 enter an account title enter a debit amount…
- Practice TRANSACTIONS DURING January 2019 Cost (OMR) | Amount (OMR) Date Particulars Units January 1 Beginning Inventory 300 10 3000 January 2 January 11 Purchase January 18 Purchase Purchase 200 15 3000 100 17 1700 300 20 6000 Total Purchase 900 13,700 Date Particulars Units Cost (OMR) Amount (OMR) January 8 Sales 300 30 9000 January 15 Sales 250 40 10000 Total Sales 550 19000 Required a) How would issues and closing inventory be valued using LIFO b) Give journal entry assuming that if the business follows perpetual inventory methodMalone Company determined its ending inventory at cost and at LCNRV at December 31, 2020, December 31, 2021, and December 31, 2022, as shown below. Cost NRV 12/31/20 $650,000 $650,000 12/31/21 780,000 712,000 12/31/22 905,000 830,000 Instructions a. Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used. b. Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using the loss method.Corrs Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below. 00Cost00 Lower-of-Cost-or-Market 12/31/19 $356,000 $327,00000000 12/31/20 420,000 395,00000000 Instructions a. Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. b. Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). c. Which of the two methods above provides the higher net income in each year?