personal customer information, making it public to mailing list company. 10. What is the distinction between Merchandising function & Buying Function? 11. The FIFO method seems to be more logical than LIFO method because it assumes the 1st merchandise purchased is the 1st merchandise sold. So why do more retailers use LIFO method. 12. Present 2 situations in which it will be advisable for Retailers to take a Mark-Down
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to record a change in depreciation methods. c 26. Disclosures required for a change in depreciation methods. c 27. Change from percentage-of-completion to completed-contracts. d 28. Disclosures required for a change from LIFO to FIFO. b 29. Change from FIFO to LIFO. c 30. Change in accounting estimate. a 31. Change in accounting estimate. b 32. Identify a change in accounting estimate. b 33. Change in accounting estimate. c 34. Identify a change in accounting estimate. d 35. Identify
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P6-1A Kirk Limited is trying to determine the value of its ending inventory as of February 28, 2012, the company’s year-end. The accountant counted everything that was in the warehouse, as of February 28, which resulted in an ending inventory valuation of $48,000. However, she didn’t know how to treat the following transactions so she didn’t record them. Determine items and amounts to be recorded in inventory. (SO 1), AN (a) On February 26, Kirk shipped to a customer goods costing $800. The goods
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retailer, has historically used FIFO for valuing its inventory. In the last few years, Bobby's business has become quite profitable and Bobby's accountant suggests that Bobby switch to the LIFO inventory system to minimize the taxable income. According to the consistency principle, Bobby can change the accounting methods for a justifiable reason for example like minimizing taxes is an acceptable reason is debatable. Assume Bobby's Computers switched from FIFO to LIFO in year 2. In year 3, Bobby's income
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Valuation Methods are First-in-Last-out (FIFO), Last-in-First out (LIFO) and Average Cost Method. These method are designed to calculate the cost of goods sold and cost of ending inventory. An explanation of the inventories valuation method are as follow: FIFO is assumed that items from the inventory are sold in the order in which they are purchased or produced. Purchase is of an out let as a store (Item) Produced is of a manufactory (Raw Material) With LIFO method inventory is sold first and older
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of materials or supplies to be consumed in the production process or in the rendering of services. Under the ASC 330-10-30, initial measurement cost formulas are: • Specific Identification • First-in, First-out (“FIFO”) • Weighted-Average Cost • Last-in, First-out (“LIFO”) Whereas IFRS does not allow the costing method use of last-in-first-out. Inventory is subsequently measured at the lower of cost or market (ASC 330-10-35). Market is defined as current replacement cost, which is limited
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Acct 3511 Chapter 8 Concepts – Inventory & Cost of Goods Sold Professor Marco J. Malandra, CPA 1. State 4 characteristics of Inventory & Cost of Goods Sold (CGS)? Is Inventory initially capitalized or expensed? What concept determines when it’s expensed? Inventory: 1) Asset (current) 2) Balance Sheet 3) real 4) debit NAB CGS: 1) Expense 2) Income Statement 3) nominal 4) debit NAB Matching: Any expenses associated with revenue
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Submission Date SUBJECT: Recommended Inventory Valuation Method Introduction I have calculated the ending inventory for Fan Company A using the four following inventory valuation methods: Periodic FIFO (First In, First Out) Periodic Average Cost Perpetual FIFO Perpetual LIFO (Last In , First Out) to determine which inventory method to recommend to the management of the Company. A summary of my calculations follows. Provide an explanation of your calculations for each of
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6-2 Lewis Corporation* Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method). Exhibit 1 Inventory Transactions 2000-2002--------------------------------------------------- 2000 Beginning Balance 1
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6-2 Lewis Corporation* Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method). Exhibit 1 Inventory Transactions 2009-2010--------------------------------------------------- &nbs p;
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