Problem H Cooper Company currently uses the
FIFO method to account for its inventory but is...
Problem H Cooper Company currently uses the
FIFO method to account for its inventory but is considering a
switch to LIFO before the books are closed for the year. Selected
data for the year are:
Merchandise inventory, January
1
$1,430,000
Current assets
3,603,600
Total assets (operating)
5,720,000
Cost of goods sold (FIFO)
2,230,800
Merchandise inventory, December
31 (LIFO)
1,544,400
Merchandise inventory, December
31 (FIFO)
1,887,600
Current liabilities
1,144,000
Net sales
3,832,400
Operating expenses
915,200
1. Compute the current ratio, inventory...
1- Assume an oil company uses the LIFO inventory method. If this
company holds the same...
1- Assume an oil company uses the LIFO inventory method. If this
company holds the same amount of inventory (in barrels) at the end
of the year as it did at the beginning, the inventory balance (in
dollars) recorded on the balance sheet this year will be exactly
the same as the ending balance of the previous year.
a) True
b) False
2- The article explains that, when the oil price rises, oil
companies can enjoy tax benefits from LIFO...
Blue Company uses the LIFO method for financial reporting
purposes but FIFO for internal reporting purposes....
Blue Company uses the LIFO method for financial reporting
purposes but FIFO for internal reporting purposes. At January 1,
2020, the LIFO reserve has a credit balance of $1,106,700. At
December 31, 2020, Blue’s internal reports indicated that the FIFO
inventory balance was $2,828,000 and for external reporting
purposes the LIFO inventory balance was $1,614,600.
What is the amount of the LIFO reserve and the LIFO effect
related to 2020?
LIFO reserve at Dec 31, 2020 $
LIFO effect for...
46.
Eloise Corp. uses the FIFO retail inventory method and reports the
following information:
Cost. Retail....
46.
Eloise Corp. uses the FIFO retail inventory method and reports the
following information:
Cost. Retail.
Purchases. $21,450. $28,000
Sales. $24,800
Net markups. $1000
Beginning inventory. $2100. $3000
Net markdowns. $400
What is the FIFO value of ending inventory for Eloise
Corp.?
A. $5068
B. $5004
C. $5053
D. $5100
Mannisto, Inc., uses the FIFO inventory cost flow assumption. In
a year of rising costs and...
Mannisto, Inc., uses the FIFO inventory cost flow assumption. In
a year of rising costs and prices, the firm reported net income of
$262,952 and average assets of $1,590,420. If Mannisto had used the
LIFO cost flow assumption in the same year, its cost of goods sold
would have been $32,360 more than under FIFO, and its average
assets would have been $33,860 less than under FIFO.
Required:
a. Calculate the firm's ROI under each cost
flow assumption (FIFO and...
Carolina Company uses the LIFO method for valuing its ending
inventory. The following financial statement information...
Carolina Company uses the LIFO method for valuing its ending
inventory. The following financial statement information is
available for its first year of operation:
Carolina Company
Income Statement
For the year ended December 31
Sales 60,000
Cost of Goods sold 23,000
Gross Profit 37,000
Expenses 13,000
Income before taxes $ 24,000
Carolina's ending inventory using the LIFO method was $8,700.
Carolina's accountant determined that had the company used FIFO,
the ending inventory would have been $9,100.
a. Determine what...
Penn Company uses a periodic inventory system. At the end of the
annual accounting period, December...
Penn Company uses a periodic inventory system. At the end of the
annual accounting period, December 31 of the current year, the
accounting records provided the following information for product
1:
Units
Unit Cost
Inventory, December 31, prior year
1,840
$
4
For the current year:
Purchase, March 21
5,170
6
Purchase, August 1
2,970
7
Inventory, December 31, current year
4,020
Required:
Compute ending inventory and cost of goods sold for the current
year under...
tiffancy & co uses LIFO for its inventory valuation.
tiffancy reports 100,000 of lifo reserve for...
tiffancy & co uses LIFO for its inventory valuation.
tiffancy reports 100,000 of lifo reserve for beginning inventory,
and 150,000 of lifo reserve for ending inventory. if it used fifo
method , its net income would have been:
A) 50,000 higher
B) 50,000 lower
C) 35,000 higher
D) 35,000 lower