Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.

Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...

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At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market. whichever is lower. Your answer is partially correct. Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (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 O for the aniounts. Round answers to 0 decimal places, eg. 6,225) Date Account Titles and Explanation Debit Credit Dec. 31 Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments
At December 31, 2020, Sandhill Company has outstanding noncancelable purchase commitments for 38,000 gallons, at $3.30 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. (b2) Assuming that the market price as of December 31, 2020, is $ 2.97, record the journal entry. (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 O for the amounts. Round answers to 0 decimal places, eg. 6,225.) Date Account Titles and Explanation Debit Credit Dec. 31
Webster Company adopted dollar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Webster's beginning inventory consisted of the following: Type Quantity Cost perUnit Total Cost X 30,000 $4.25 $127,500 Y 10,000 3.50 35,000 Z 25,000 2.00 50,000 65,000 $212,500 During 2019, Webster had the following purchases and sales: Type QuantityPurchased Cost PerUnit QuantitySold Selling Priceper Unit X 110,000 $4.75 90,000 $10.00 Y 100,000 3.75 85,000 7.50 Z 75,000 2.10 70,000 5.00 285,000 245,000 Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to four decimal places.$
Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2021, when it had an inventory of $841,000. Its inventory as of December 31, 2021, was $874,000 at year-end costs and the cost index was 1.15. What was DVL inventory on December 31, 2021? Multiple Choice O 760,000. 874,000. O967,150. 841,000. O
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Heinz Company began operations on January 1, 2019, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:Final Inventory 2019 2020FIFO ₱640,000 ₱ 712,000LIFO 560,000 636,000Net Income (computed under the FIFO method) 980,000 1,030,000Based on the above information, a change to the LIFO method in 2020 would result in net income for 2020 ofa. ₱1,070,000 c. ₱954,000b. ₱1,030,000 d. ₱950,000
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At December 31, 2020, Indigo Girls Company has outstanding noncancelable purchase commitments for 36,000 gallons, at $3.00 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower.Instructionsa. Assuming that the market price as of December 31, 2020, is $3.30, how would this matter be treated in the accounts and statements? Explain.b. Assuming that the market price as of December 31, 2020, is $2.70, instead of $3.30, how would you treat this situation in the accounts and statements?c. Give the entry in January 2021, when the 36,000-gallon shipment is received, assuming that the situation given in (b) above existed at December 31, 2020, and that the market price in January 2021 was $2.70 per gallon. Give an explanation of your treatment.
Mambo Ltd has the following products in inventory at the end of 2019: Units Cost per unit GH¢ XYZ (completed) 540 22 ABC (part complete) 280 26 Each product normally sells at GH¢34 per unit. Due to the difficult trading conditions, MamboLtd intends to offer a discount of 15% per unit and expects to incur GH¢4 per unit in selling costs. GH¢10 per unit is expected to be incurred to complete each unit of ABC. Required: In accordance with IAS 2 Inventories, at what amount should inventory be stated in the financial statements of Mambo Ltd as at 31 December 2019?
ANC Company had the following transactions: Beginning inventory, 200 at P5 per unit; purchased on January 15, 2020, 100 at P5.30; purchased on January 28, 2020, 100 at P5.50. On January 20, 2020, 250 units were sold. Using moving average method, what is the average cost per unit? Show answer until two decimal place.
On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $60,000. The following information is available on its inventories for 2020 through 2022. Year EndingInventoryat December 31 Year-EndConversionFactor* 2020 $68,000 1.10 2021 80,000 1.22 2022 72,000 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 Answer Dollar-value LIFO ending inventory, 2021 Answer Dollar-value LIFO ending inventory, 2022 Answer Question 2 Not yet answered Marked out of 25.00 Flag question Question text Estimating Inventory Using Gross Profit Method The following data is from Netflicks Company for 2020. Sales revenue $240,000 Beginning inventory 32,000…
Data for the next 3 questions: Alberto Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2019, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Quantity on hand 18 15 10 25 15 30 Original Cost $75 $80 $80 $80 $50 $36 Replacement cost $120 $72 $70 $30 $70 $30 Selling price $120 $110 $95 $90 $110 $90 Estimated selling expense $30 $28 $24 $23 $28 $23 Normal profit $24 $22 $19 $18 $22 $18 Based upon data, what is the balance of merchandise inventory before application of LCM principle? Answer: What would be the adjusted balance of merchandise inventory after application of LCM Principle? Answer: Provide the adjusting journal entry that company has to make to reflect…