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

Scenario-you seemed to develop significant interest with

Scenario- You seemed to develop significant interest with your talk on the future of cost accounting. Your boss has heard about the excellent presentation and you are hopeful that your early retirement will take place. A ...

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. ...

Polarisreading the case and answer the all question polaris

Polaris Reading the case and answer the all question: Polaris: Suggested assignment questions Why does the Polaris outsource the manufacture of most components but in-source final assembly? Which manufacturing location o ...

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................. ...

Question 1pringle company distributes a single product the

Question 1. Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:   Total    Per Unit   Sales $ 300,000   $ 20        Variable expenses   210,000     14          Contri ...

Module 3 - slpstrategic choicessimulationin module 3 you

Module 3 - SLP Strategic Choices SIMULATION In Module 3, you will use CVP analysis to inform the pricing of your 3 products. SCENARIO CONTINUATION: You've now completed SLP2, and it the date is (once again) January 1, 20 ...

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 ...

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen