Premium Essay

12th Ed

In:

Submitted By reedmonk
Words 3314
Pages 14
sti81980_07_c07_p323-366.qxd

7/18/06

12:29 PM

Page 335

Issue 3: Cost Flow Assumptions

335

EXHIBIT 7.3

Comparison of Cost Flow Assumptions, Historical Cost Basis

Assumed Data Beginning Inventory: TV Set 1 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases: TV Set 2 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TV Set 3 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sales: One TV set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost Flow Assumption FIFO Financial Statements Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . Gross Margin on Sales . . . . . . . . . . . . . . . . . . . . . . . Ending Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . aTV $250 290 300 $840 $550

Weighted Average (2) $550 280b $270 $560e

LIFO (3) $550 300c $250 $540f

(1) $550 250a $300 $590d

set 1 costs $250. TV sets costs $280 ( cTV set 3 costs $300. bAverage dTV

$840/3).

sets 2 and 3 cost $290 $300 $590. average TV sets cost 2 $280 $560. fTV sets 1 and 2 cost $250 $290 $540. eTwo LAST-IN, FIRST-OUT
The last-in, first out (LIFO) cost flow assumption assigns the costs of the latest units acquired to the withdrawals and assigns the costs of the oldest units to the ending inventory. Some theorists argue that LIFO matches current costs to current revenues and, therefore, that LIFO better measures income. Column (3) of Exhibit 7.3 illustrates LIFO. LIFO assumes that the firm sells TV set 3 costing $300 while the costs of TV sets 1 and 2 remain

Similar Documents

Free Essay

Hangover Part 2

...The hangover 2: “It happened again”. The hangover has begun, oh yes it has. The tragic trashed trio have yet again repeated their actions from the first film, where they woke up in a chaotic Las Vegas suite with no memory of what happened the night before at all. But this time, they’d done even worse, and lost their friend Teddy, whose disappearance has totally broken his sister’s husband-to-be, Stu (Ed Helms). The wedding was to be in a couple of hours in one of the world’s amazing and exotic places, Thailand. Although Stu had decided to have a subdued bachelor party due to the unforgettable bash 2 years ago in Las Vegas, Stu is taking no chances and has opted to have a quiet bachelor party. However, this did not satisfy the boys, especially Phil(Bradley Cooper) and so instead, they have a buttoned up pre-wedding drink, and before they know it, they wake up totally demolished inside and out in Bangkok in a cruddy hotel with amnesia, AND with one member of the party missing which they only realise after checking up on their faces. However the worst has yet to come. They are all fully determined to find their friend Teddy although the circumstances are terrible and they have to meet with a series of humiliating disasters, and gross situations. Déjà vu has attacked them again, and what happened in Vegas was a total disaster, but what happens in Bangkok can’t possibly be...

Words: 251 - Pages: 2

Free Essay

Ed Pulaski

...found a safety place in extreme situation, he took charge and helped his group survive and he sacrifice himself to save others. First, Ed Pulaski did not panic in extreme situation and used his knowledge of the area to hide from the fire. He was a forest ranger and on that day he went to the town for fresh supplies. On the way back he and his group where completely surrounded by the wild fire. There was no place to run. He did not panic and found the solution by using his knowledge of the forest. He decided to hide in the tunnel. Second, he took control of the situation and stopped panic. In the tunnel that was difficult to breath and people were scared and in panic. He ordered them to law down on the ground and stopped people who tried to leave because there was no other place to run outside the tunnel. Also, he realized that the fire would burn wood tunnel support and he found the way by carrying water in his hat. Third, he was responsible for his men and took big risk to his personal safety. While he was protecting his men he was badly injured; however, he continued fighting for his people. In the end, his skin had burned, he got blinded and he was unconscious. As the result, forty-fife people out of fifty survived. In conclusion, there was a big fight between wildfire and people where Ed with his group were winners. They survived because of Pulaski’s knowledge of the area, his strong command position and his brave. Today that place...

Words: 361 - Pages: 2

Premium Essay

Cannery Row

...! Prof. Laffont! ENC1101! Oct 9, 2014! ! Three Key Aspects in John Steinbeck’s Cannery Row Cannery Row was written by John Steinbeck in 1945. The story takes place in Monterey, California sometime between the Great Depression and World War II. The story is based on “his non-teleological acceptance of what ‘is,’ his ecological vision, and his own memories of a street and the people who made it home” (Shillinglaw vii). Steinbeck lived during the Great Depression and his experience affected the tone within the story. Steinbeck chose to write using third person narrative within the story which is an omniscient point of view- this allows the reader to know what the characters are thinking and feeling. The author wrote this story for the soldiers entertainment throughout battle. Steinbeck uses a unique style to construct this novel by periodically incorporating anecdotes and vignettes within the book, which allows the author to paint a overall picture in the reader’s mind of the reality of this time period. The major aspects within Cannery Row are loneliness, suicide and the development of characters. In the story Cannery Row, loneliness can be considered a major aspect of this book. Loneliness describes many of the characters in this narrative- especially the character Doc. Although Doc is much loved by his peers and has many friends, he is lonely. He spends most of his time listening to music on the phonograph. The text explains that “'He was a dark and lonesome looking man'...

Words: 1149 - Pages: 5

Premium Essay

Free College Essays-The Carbonaro Effect

...“The Carbonaro Effect” is a hidden camera television show where a magician, Michel Carbonaro, tricks unsuspecting, ordinary people. All of his performances occur in ordinary locations such as in stores, offices, or schools, and the people Carbonaro tricks are not aware that he is a magician. Carbonaro’s physics- and logic defying illusions produce hilarious reactions from his gullible targets. While Carbonaro’s illusions are certainly entertaining, I feel there is a damper on his magic since I am aware that I am only seeing illusions. However, much of the entertainment of the show comes from the incredulous reactions of subjects as they stand there wide eyed, and open mouthed, taking in the impossible scene they have just witnessed. As I watch...

Words: 388 - Pages: 2

Free Essay

Adam and Truman

...Blast from the Past and The Truman Show both depict the story about men growing up in an artificial world. Since they are born, they live in a world that is created by others and they do not contact with the real world. However, both of the men in these two movies do not give up their dreams and they are determined. They are eager to get out of the present situation and they have a strong desire to live in the way they like. Finally, through their efforts, they shake off the shackles and both of them lead a free and happy life. Also, there is an interesting thing appears in both movies that the Christian image is mentioned. In Blast from the Past, each time Adam’s family ascent to the ground, the druggies who are religious acolytes are pious and reverent to them, thinking Adam’s family are Father and Son. In The Truman Show, after the vicious storm, Truman emerges from the water in a cruciform position which represents the Jesus after being tortured. Although the style of the two movies is similar, there are a lot of differences between them. First of all, Adam lives in a world full of love and what around him is the beautiful and positive aspect of life. Since he is born, his parents, who are the only person that he can contact with, tell him what the real world is. Moreover, his parents teach him dance, languages and sports. He learns from his parents to be modest, kind and a man of morality. Although his parents create an unreal world for Adam, they are not on...

Words: 883 - Pages: 4

Premium Essay

Ed Gein

...Abnormal Psychology 2300 The Diagnosis of Edward Gein Rainy River Community College Delaney Peters 13 November 2013 Edward Theodore Gein was born to Augusta and George Gein on August 27th, 1906 in La Crosse, Wisconsin. Edward had an older brother named Henry. George Gein was a violent alcoholic who was frequently unemployed. Augusta on the other hand followed to a different beat she was a very religious individual whom had very harsh opinions on other women. Often times, Augusta would refer to other woman as prostitutes and instruments of the devil. According to Dr. George Arndt, a psychiatrist that studied the case of Edward Gein, Augusta’s obsessive and negative perspective on women rubbed off on her children, more specifically on Edward. She reserved time every afternoon to read her children verses from the bible, usually selecting graphic verses from the Old Testament dealing with death, murder and divine retribution. Without surprise, Edward himself became a target for bullies. Classmates and teachers recalled off-putting mannerisms, such as seemingly random laughter, as if he were laughing at his own personal jokes. Despite his poor social development, he did surprisingly well in school and was often viewed as an average academic student. Many sources cite that Edward’s mother Augusta often beat her children because she was convinced that they were going to become just like their father, a drunken failure...

Words: 2336 - Pages: 10

Free Essay

Animal Farm

...Comparative essay- Animal Farm Animal farm- Paragraph 1- manipulation by the pigs State they are educated elite, use intellectual superiority to manipulate the other animals. Quote shows them as apathetic and meddlers. State how Orwell is criticising Stalin and his Government. Paragraph 2- Propaganda by the pigs State Napoleon uses propaganda through squealer to push his ideas and implement his plans. Quote shows that Napoleon uses propaganda to get what he wants. State that Orwell is criticising Stalin’s manipulation of the Russian society a big ally of the propaganda is the animal’s ignorance and false memory Paragraph 3- Power of Napoleon State that Napoleon, whom represents Stalin, only gained and keeps his power through cruelty, treachery and making the other animals scared of him. Show that after the rebellion, Napoleon has taken the place of Mr Jones (seen through quote) State that the quote shows that Napoleon has dominance over the farm like Mr Jones. State that Orwell is criticising that after a rebellion, inevitably someone will rise to power over all and everything will be the same, maybe worse. Quotes- For manipulation- ‘Does it not say something about never sleeping in a bed? ... It says, ‘no animal shall sleep in a bed with sheets.’ (cynicism) For propaganda- When squealer assures the animals about trading with humans- ...

Words: 614 - Pages: 3

Premium Essay

Comparing Truman And The Real World

...At the end of the film we do not see how truman really goes out and experience the real world nor do we see if he goes out to find Sylvia. But my ending of the movie is Truman really does goes out the the done and see the outside world. At the end truman says ‘’In case i don't see ya. Good evening, good afternoon and, goodnight.’’ Then he walks out and when Truman finally walks out he goes thru people trying to stop him on the way out of the done, like for the last time making a last try of making him stay. He finally gets past them and out into the real world. When he gets out into the real world he sees every thing bright and big and noisy. See so many different things he does know what to do. He finally found Sylvia and they moved far far...

Words: 345 - Pages: 2

Premium Essay

Edward Gein Research Paper

...wants me to be real nice and sweet, and the other part wonders what her head would look like on a stick.” According to a recent study, five percent of Crane High school students have heard of this psychopath. This paper is based solely on the unbelievable yet intriguing crimes Ed Gein had committed when he was alive. He was a very unusual human, born on a farm and raised by a mother who was rather intimidating. In forty years his mother passed and he was left to take care of the farm all by himself. In the next few years he was to become a grave robber, a cannibal, a necrophiliac, and he took up arts and crafts in body parts. He is seen as probably the most weird and bizarre serial killer of the twentieth century, and probably...

Words: 2160 - Pages: 9

Free Essay

Edward Gein and His Murders

...very violent. He never seemed to keep a job and the rest of the family ended up not wanting to live with George anymore. Divorce was not an option for Augusta and George because of their religious beliefs. Soon they left George. Augusta was running the family’s grocery store and when she saved enough money, she purchased an old farm in another town called Plainfield. She particularly liked this spot because it was secluded so there were very few outside influences on her sons. Edward only left home to go to school, where he was bullied because of a slight growth over one eye. Augusta did not allow him to have any friends. If Ed was not at school, he was doing chores for his mother. Augusta seemed to ‘press’ religion on her boys. She preached to them about alcohol and sex and many other things. She also read from the bible every day to Ed and Henry. In 1840, George Gein passed away and...

Words: 793 - Pages: 4

Free Essay

Skit

...Narration Seen 1st Hello everyone , Here we present a skit on corporate office of Kela co-op ltd. This is an organization which sales computers. There is a target meeting going on in the conference hall, where Sushil is heading the meet of his employees. Sushil: hello everyone, Who are we??? Everyone: We are the champions. Sushil: i don’t think we are any more. Did u had a look at sales review of last quarter. Pathetic , kapil what are you doing. Kapil: I tried my best sir. Sushil: I don’t need your best. I need your numbers. Please have a look, there is a continuous decline in your sales Mr Kothari one of the most important client of our company. Kapil: sorry sir. Sushil: you better be. Kalash i was expecting a good number form you that you should have delivered. Kalash: Sir, I won’t let you down this time. Sushil: good job kumar. You are learning well. Kumar: thank you sir. I have been facing lot of problems in recent time. Please help me. Sushil: no worries kumar. You can anytime walk in my cabin . you be with kalash instead of being with kapil stupid. Kapil: BOSSSSS .......!!!! Aakash: ......... Sushil: kapil you better don’t argue with me. We will disperse for today. I Hope i will get better results next time. Seen 2nd As you saw everybody got firing from the boss for there poor performance, those everybody has to pull there socks and perform well. Now there is a vacancy for a post of sales consultant in the organization . the interview has been schedule...

Words: 679 - Pages: 3

Premium Essay

Title IX Gender Equality

...    On the day of June 23, 1972 Title IX of the Education Amendments was enacted by Congress and signed into law by United States President Richard Nixon. On this monumental day, women across the entire United States would no longer be discriminated on the basis of sex. Thirty-seven that would change everything, "No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance." This landmark federal statute was considered the most important step for gender equality since the right to vote given in the 19th Amendment.  Hawaii congresswoman, Patsy T. Mink worked tirelessly by taking a stand to change the rights of women receiving an education also the ability to play a sport they love. She stood firm while promoting justice and equality through being outspoken on gender discrimination as she took her place as the first woman of color and Asian-American elected to Congress in 1965. Congresswoman Mink, co-writer and sponsor of Title IX was honored in October 2002 by President George W. Bush by having Title IX renamed the Patsy Takemoto Mink Equal Opportunity in Education Act.Forty-four years later, this Amendment continues to be battled and questioned in regards to its economic, social, personal opportunities as well as its political impact for women.     Title IX has economic impact by stating schools receiving federal...

Words: 1183 - Pages: 5

Premium Essay

Similarities Between The Lottery And The Truman Show

...The movie, “The Truman Show”, directed by Peter Weir and written by Andrew Niccol. This movie was filmed in 1998 at the start of the technological boom, the year before the turn of the three zeros on all of the computers. “The Truman Show” is essentially a reality show that has depicted the life of Truman ever since he was born, but Truman has no idea it is happening. This is done with 5,000 hidden cameras throughout the world he lives in. There are two distinct readings that can be compared to this movie, “The Ones Who Walk Away from Omelas” and “The Lottery” while also containing three distinct fears for the people of that time, fear of people being influenced by the media, fear of technology taking over their lives, and finally that we are always being watched. This movie is a dystopia, while being best compared to the two dystopias, “The Ones Who Walk Away from Omelas” and “The Lottery”. “The Ones Who Walk Away from Omelas” describes all the pleasure of society is based on the suffering of one person Some of them have come to see it, others are content merely to know it is there. They all know that it has to be there. Some of them understand why, and some do not, but they all understand that their happiness depends wholly on this child's abominable misery”. This compares exceedingly well with “The Truman Show” in that the pleasure of the TV viewers is based on the suffering of Truman “For God's sake, Chris! The whole world is watching. We can't let him die in front of a live...

Words: 1022 - Pages: 5

Premium Essay

Power And Authority In The Truman Show, Directed By Peter Weir

...One of the main themes of The Truman Show is power and authority. The director, Peter Weir is able to develop these themes by using techniques such as dialogue, setting, and characterisation. There is also the motif of Christof being like God which runs throughout the movie. Peter Weir uses dialogue to develop the theme of power and authority in The Truman Show. “Look at that sunset, Truman. It’s perfect … that’s the Big Guy. Quite a paintbrush he’s got.” This line is spoken to Truman by his best friend Marlon when Truman tells him that he wants to leave Seahaven. Marlon tries to convince Truman to stay by emphasising the beauty of Seahaven. He refers to ‘the Big Guy’, which is normally slang for God when he is actually talking about Christof. Through this quote, Weir is able to show the audience that Christof is so powerful that some of the characters liken him to God. Weir does this in another quote which is spoken by Christof when he introduces himself to Truman. “I am the creator … of a television series.” Christof adds “… of a television series,” after announcing to Truman that he is the creator. Peter Weir uses the slight pause to show the viewer that Christof himself has a God complex. The setting of the Lunar Room is another technique employed by Peter Weir to develop the themes of power and authority. The Lunar Room is Christof’s control room. It is called the Lunar Room because it is in what appears to be the moon in the sky of Seahaven. This room displays the power...

Words: 620 - Pages: 3

Free Essay

Mgmt 350

...Decisions in Paradise The company that I work for manages Government Contracts. The office I work for is the Chicago office. We manage contracts for Indiana, Wisconsin and Illinois. At any point of time the Chicago office manages twenty thousand plus contracts. Many of the contracts are due monthly. The field offices that we have in these states handle these contracts when they are in the field offices region. We recently decided that our office’s will open a facility in Kava were I will be meeting with another employee from a different office. I’ll do anything to get out of Chicago for the winter. I met up with Alex at the new field office in Kava. Alex informed me that opening this office was Chris’s idea. Cheap quality labor in Kava and this island exports a lot of different things that we can use back home. They export petroleum, coffee, spices, bananas and natural gas. Giving the contracts to the companies here on the island could be mutually beneficial. The contractors get big orders and can ship the entire product in a timely manner and do it cheaper even with the shipping costs then the contractors back in the states. There can be some pushback from the local government because they might feel like we are taking advantage. Having pushback from the government would be bad, it could hold up the process and it will dwindle whatever product we have in stock. We are trying to get Kava back on track. Even though they have all these export goods...

Words: 432 - Pages: 2