Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.8E
Dollar-Value LIFO, LIFO Reserve. CWB Teleconcepts, Inc. manufactures and distributes three models of handheld devices the Flame, the Globe, and the HD3 CWB uses the dollar-value UFO method information for 2018, 2019, and 2020 is presented in the following table.
| Description | Base Year 2018 | 2019 | 2020 | |||
| Inventory | Units | Total FIFO Cost | Units | Total FIFO Cost | Units | Total FIFO Cost |
| Flame | 5,000 | $450,000 | 7000 | $658,000 | 4.000 | $392,000 |
| Globe | 6,000 | 660,000 | 5,000 | 580,000 | 3.000 | 375,000 |
| HD3 | 3,000 | 450,000 | 5,000 | 800,000 | 1.000 | 170,000 |
The cumulative price indices for 2018, 2019, and 2020, respectively are 1.00, 1 056, and 1.1155.
Required
- a. Compute the company s ending inventory using dollar-value LIFO tor each year. Treat the three models as one group. Round to the nearest dollar,
- b. Prepare the
journal entry required to adjust the LIFO reserve for each year.
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Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000 .
Compute for the following:
The Sales Price factor shows a variance of?
The Cost Price Factor shows a variance of?
The Sales-mix Factor shows a variance of?
uols-A moodle1.du.edu.om
Flag question
Total cost and number of units in the first
seven months of 2020 are given below.
According to this information, which of
the following is the cost equation?
Total
No.of
Periods
Cost
Units
January
500
45,750
February
510
46,305
March
520
46,860
April
545
48,248
May
565
49,358
June
580
50,190
July
51,855
610
Select one:
a. Y=18000+55.5*X
b. Y=21000+50*X
c. Y=22500+48.3*X
d. Y=19000+52.5*X
Clear my choice
Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000. The Sales-mix Factor shows a variance of?
A. 2500F
B. 4000U
C. 5750 F
D. 5750 U
Chapter 10 Solutions
Intermediate Accounting (2nd Edition)
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