2014). What are the differences between U.S. GAAP and IFRS? U.S. GAAP allows numerous ways, such as retail method, to determine the cost of inventory. The three simple and most popular methods used include: 1) first-in, first-out (FIFO), 2) last-in, first-out (LIFO), and weighted average (Gray & Ehoff Jr., 2014). Once the cost is evaluated, the LCM rule is applied to the result to decide the monetary value to be stated in the financial reports. The LCM reflects a “conservative approach” by stating
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take into account any items that were lost, stolen or damaged throughout the accounting period. Another method is the first-in, first-out method, also know was FIFO. This method is very simple they assume the oldest units in the inventory are always the first sold. Then the last-in, first-out method is just the reverse also known as LIFO. This means the newest items that are in inventory are the first ones sold. These methods are not very exact. Lastly you have the average cost method which is
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Assignment: Cost Accounting Applied Professor Bryan Womack Course Title ACC 350012VA016-1122-001 Cost Accounting February 26, 2012 Companies that are successful financially know what their costs are and how those costs are being spent. The company I have chosen wants to change from a general accounting system where costs are put in general categories and they currently do not have any allocation of costs
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and 486 for 2002. Changing to LIFO will defer taxes given the current expectations. 3. The effect of remaining on LIFO in this situation is that pre-tax income for 2003 will be higher by $1,915 and, therefore result in higher tax for thie year of $766. That still results in a net deferral from inception. 4. LIFO reserve in 2000 = $1,220. LIFO reserve in 2001= $2,300. The LIFO reserve is the cumulative deferred income due to using LIFO instead of FIFO. The LIFO reserve increased by $1,080 in
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Per Unit $1,500 1,800 5,000 5,000 2,000 5,000 5,000 2,200 Total $90,000 216,000 400,000 250,000 200,000 300,000 150,000 220,000 1. Record the inventory, purchases and cost of goods sold in a Perpetual Inventory record using the FIFO method. Date 3-Mar Quantity Purchases Unit Cost Total Cost 8-Mar 120 1,800 216,000 Quantity Cost of Goods Sold Unit Cost Total Cost Quantity 60 Inventory On Hand Unit Cost Total Cost 1,500 90,000 60 120
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1. Bank statement received by bank =$2,950.00 Check# 124 payment less or didn’t return from bank = $1080 Check# 138 payment less or didn’t return from bank = $720 Transit payment = $3200 Adjusted Bank Balance = $4350 Broom showed checking account balance =$4010 Charging for check printing= $12 Charging for NSF check = $18 Withdrawal record missing by Broom =$30 Note collected for Broom by bank =$400 Adjusted Book Balance =
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Running head: DISCLOSURE ANALYSIS PAPER Disclosure Analysis Paper Mandy Diaz University of Phoenix Michael Littlejohn ACC422 / Intermediate Financial Accounting II August 23, 2010 Disclose Analysis Paper The consolidated financial statements include the accounts of Wal-Mart Stores, Inc. and its subsidiaries. Significant intercompany transactions have been eliminated in consolidation. Investments in which Wal-Mart has a 40% to 60% voting interest and which Management control are
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------------------------------------------------- Top of Form Question 1 Answer saved Marked out of 1 Question text Answer the following questions using the information below: The Daltry Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of
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| | | | |4-3. |With inflation, what are the implications of using LIFO and FIFO inventory methods? How do they affect the
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First in, First out or FIFO is an inventory method wherein the item that arrived first will also be the first to be shipped out to the customer. The cost of goods sold is charged during the sale of an item. This is most applicable to goods with an expiration date such as grocery items to prevent spoilage. Last in, First Out or LIFO is an inventory method wherein the item that has recently arrived will be the first to be shipped out to the customer. The price of the items is valued at the current
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