Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert


Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions.

 2299_Sales transaction.jpg

  
Required:

1) find out cost of goods available for sale and the number of units available for sale.

Cost of goods available for sale

Number of units available for sale

2) Compute the number of units in ending inventory.

3)Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) specific identification-units sold consist of 530 units from beginning inventory and 130 units from the March 13 purchase, and (d) weighted average. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal places. Round your final answers to the nearest dollar amount.)
                                      Ending inventory
(a) FIFO                                    -
(b) LIFO                                    -
(c) Specific identification              -
(d) Weighted average                 -

4) Compute gross profit earned by the company for each of the four costing methods. (Round your per unit costs to 2 decimal places and inventory balances and final answer to the nearest dollar amount.)
                                         Gross profit
(a) FIFO                                    -
(b) LIFO                                    -  
(c) Specific identification              -    
(d) Weighted average                 -

Doubletree Company’s financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2010, is understated by $68,000, and inventory on December 31, 2011, is overstated by $38,000.

For Year Ended December 31                2010        2011              2012

(a)      Cost of goods sold                 $743,000      $973,000      $808,000 
(b)      Net income                             286,000       293,000        268,000 
(c)      Total current assets              1,265,000      1,378,000     1,248,000 
(d)      Total equity                         1,405,000      1,598,000     1,263,000

Required:

1) For each key financial statement figure—(a), (b), (c), and (d) above—prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted should be indicated with a minus sign.

(a)

Cost of goods sold:                           2010    2011    2012
Reported amount                                -          -        -   
Adjustments for: 12/31/2010 error        -          -           -
                       12/31/2011 error           -         -           -
  Corrected amount           

(b)

Net income                                      2010    2011    2012
Reported amount                                -          -        -
       
Adjustments for: 12/31/2010 error      -           -        -
       12/31/2011 error          
       Corrected amount                        -           -        -

(c)

Total current assets                       2010    2011    2012
Reported amount       
Adjustments for: 12/31/2010 error     -        -           -
                         12/31/2011 error     -         -           -
Corrected amount                             -         -           -

(d)

Equity:                                      2010    2011    2012
Reported amount                           -         -          -
Adjustments for:12/31/2010 error          
                         12/31/2011 error  -         -         -      

Corrected amount                            -        -         -

2) What is the error in total net income for the combined three-year period resulting from the inventory errors?

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M9993

Have any Question? 


Related Questions in Cost Accounting

Questionyou are just from attending a conference on

QUESTION You are just from attending a conference on Activity Based Costing (ABC) and you now wish to put your knowledge to practice by applying the principles of ABC to the four products currently made and sold by your ...

Assignment1 the following information is from the

Assignment 1. The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication: Compute the budgeted amounts for: a. Purchases of direct materials during the year. b. ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Question 1 high-low methodtucson tractor inc has

Question 1 High-low method Tucson Tractor Inc. has accumulated the following data over a six month period   Indirect Labor Hours Indirect Labor Costs January......................... 400 $ 6,000 February................. ...

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

Requirementsdo not use any direct quotes andor cut and

Requirements: Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel ...

Cost accountingquestion 1 which of the following statements

Cost Accounting Question 1. Which of the following statements regarding differential costs is (are) false? (A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturingoverhead in the produ ...

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro