ch09
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ch09

Course: ACCT 201, Spring 2011

School: Community College of...

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ch09 Student: ___________________________________________________________________________ 1. 2. 3. 4. 5. In determining lower-of-cost-or-market, market is the expected selling price under normal operations. True False Net realizable value is selling price less costs of completion and disposal. True False The primary motivation behind LCM is consistency. True False The purpose of ceilings and floors in LCM is to...

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___________________________________________________________________________ 1. ch09 Student: 2. 3. 4. 5. In determining lower-of-cost-or-market, market is the expected selling price under normal operations. True False Net realizable value is selling price less costs of completion and disposal. True False The primary motivation behind LCM is consistency. True False The purpose of ceilings and floors in LCM is to prevent profit distortion. True False Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting financial statement ratios. True False Inventory written down due to LCM may be written back up if market values go back up. True False In using the LIFO retail method, the current period cost-to-retail percentage includes both net markdowns and net markups. True False Purchase returns and purchase discounts are ignored when computing cost-to-retail ratios for the retail method. True False The cost-to-retail percentage used in the retail method to approximate average costs considers both markdowns and markups. True False 6. 7. 8. 9. 10. If the quantity of goods held in inventory decreased during the period, the dollar amount of ending inventory cannot exceed the dollar amount of beginning inventory. True False 11. For a change from the average cost method to FIFO, the current year's income includes the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. True False 12. A change from LIFO to any other inventory method is accounted for retrospectively. True False 13. For a purchase commitment contained within a single fiscal year, if the market price is less than the contract price, the purchase is recorded at the contract price. True False 14. For a purchase commitment extending beyond the current fiscal year, if the market price on the purchase date declines from the previous year-end price, the purchase is recorded at the market price. True False 15. International Financial Reporting Standards allow the reversal of an inventory write-down. True False 16. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Change from Estimates value of inventory based on historical __ LIFO to FIFO relationships. __ 2. LIFO retail Requires retrospective treatment. __ __ 3. Net markup Added in arriving at ending inventory at retail. __ __ 4. Gross profit Beginning inventory is not included in the calculation __ method of the current period's cost-to-retail percentage. __ 5. Retrospective Required for a change from FIFO to average cost. __ treatment __ 17. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Cost-to-retail Change from LIFO to FIFO. __ percentage __ 2. Average cost retail Cost-to-retail percentage is determined for all __ method goods available for sale. __ 3. Normal spoilage Always deducted after arriving at the calculation __ of the cost-to-retail percentage. __ 4. Requires Deducted in arriving at ending inventory at __ retrospective retail. __ treatment 5. Net markdown Divide cost of goods available for sale by goods __ available at retail. __ 18. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Markup on cost Elimination of a price reduction. ____ 2. Markdown cancellation 3. Retail inventory method 4. Normal profit margin 5. Gross profit ratio Gross profit divided by sales. ____ Gross profit divided by cost. ____ Gross profit percentage times selling ____ price. Ideal for high volume, low cost ____ inventory. 19. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Requires retrospective Increase in selling price. __ restatement __ 2. LCM Losses would be recognized when values __ decline. __ 3. Conventional retail Markdowns are not in the calculation of the __ method cost-to-retail percentage. __ 4. Replacement cost Market if between ceiling and floor. __ __ 5. Additional markup Material inventory error discovered in a __ subsequent year. __ 20. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Initial markup Must be added to sales if sales are recorded net ___ of discounts. _ 2. Conventional retail NRV less "normal" profit. ___ method _ 3. Inventory error, Original increase in selling price above cost. ___ example _ 4. Floor in LCM Approximates lower of average cost or ___ approach market. _ 5. Employee discounts Purchases are unrecorded. ___ _ 21. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Dollar-value LIFO Reduction in selling price. __ retail method __ 2. Disposal costs Requires base year retail to be converted to layer __ year retail and then to cost. __ 3. NRV Deducted from selling price when calculating __ ceiling. __ 4. Change to LIFO Upper limit or ceiling in LCM approach. __ from FIFO __ 5. Markdown Usually impossible to calculate the effect on __ prior years' financial statements. __ 22. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Normal spoilage Reduction in selling price below the original selling __ price. __ 2. Change to LIFO Requires base year retail to be converted to layer __ from FIFO year retail and then to cost. __ 3. Markdown Accounting change requiring retrospective __ treatment. __ 4. Change from Ceiling in the determination of market. __ LIFO __ 5. Conventional Usually impossible to calculate the effect on prior __ retail method years' financial statements. __ 6. Cost-to-retail Average cost, LCM. __ percentage __ 7. Dollar-value Not acceptable for the preparation of annual __ LIFO retail financial statements. __ 8. Gross profit Must be added to sales if sales are recorded net of __ method discounts. __ 9. Employee Deducted in the retail column after the calculation __ discounts of the cost-to-retail percentage. __ 10. Net realizable Divide cost of goods available for sale by goods __ value available at retail. __ 23. In applying LCM, market cannot be: A. Less than net realizable value. B. Greater than the normal profit. C. Less than the normal profit margin. D. Greater than net realizable value. 24. In applying LCM, market cannot be: A. Less than net realizable value minus a normal profit margin. B. Net realizable value less reasonable completion and disposal costs. C. Greater than net realizable value reduced by an allowance for normal profit margin. D. Less than cost. 25. Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements are correct? A. B. C. D. Option A Option B Option C Option D 26. An argument against the use of LCM is its lack of: A. Relevance. B. Reliability. C. Consistency. D. Objectivity. 27. Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana's inventory? A. $600,000. B. $520,000. C. $590,000. D. $510,000. Data related to the inventories of Costco Medical Supply is presented below: 28. In applying the LCM rule, the inventory of surgical equipment would be valued at: A. $230. B. $240. C. $170. D. $152. 29. In applying the LCM rule, the inventory of surgical supplies would be valued at: A. $115. B. $90. C. $80. D. $69. 30. In applying the LCM rule, the inventory of rehab equipment would be valued at: A. $315. B. $247. C. $150. D. $235. 31. In applying the LCM rule, the inventory of rehab supplies would be valued at: A. $122. B. $158. C. $162. D. $155. Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: 32. In applying the LCM rule, the inventory of skis would be valued at: A. $162,000. B. $128,000. C. $120,000. D. $126,000. 33. In applying the LCM rule, the inventory of boots would be valued at: A. $135,000. B. $133,000. C. $130,000. D. $105,000. 34. In applying the LCM rule, the inventory of apparel would be valued at: A. $108,000. B. $90,000. C. $110,000. D. $115,000. 35. In applying the LCM rule, the inventory of supplies would be valued at: A. $45,000. B. $54,000. C. $41,000. D. $42,000. 36. When using the gross profit method to estimate ending inventory, it is not necessary to know: A. Beginning inventory. B. Net purchases. C. Cost of goods sold. D. Net sales. 37. On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: What is the estimated inventory on July 8 immediately prior to the fire? A. $192,000 B. $490,000 C. $510,000 D. $280,000 38. So. California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2011. In preparing their insurance claim on the inventory loss, they developed the following data: Inventory January 1, 2011, $300,000; sales and purchases from January 1, 2011, to May 1, 2011, $1,300,000 and $875,000, respectively. So. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2011, is: A. $302,500. B. $360,000. C. $395,000. D. $455,000. 39. Howard's Supply Co. suffered a fire loss on April 20, 2011. The company's last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howard's consistently reports a 30% gross profit. The estimated inventory loss is: A. $490,000. B. $238,000. C. $250,000. D. None of the above is correct. 40. Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2011. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2011, to August 5, 2011, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be: A. $131,175. B. $65,000. C. $17,143. D. None of the above is correct. 41. When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are: A. Net markups and net markdowns. B. Neither net markups nor net markdowns. C. Net markups, but not net markdowns. D. Net markdowns, but not net markups. 42. Included in the computation of the cost-to-retail percentage for the LIFO retail method are: A. Net markups and net markdowns. B. Neither net markups nor net markdowns. C. Net markups, but not net markdowns. D. Net markdowns, but not net markups. 43. In calculating the cost-to-retail percentage for the retail method, the retail column will not include: A. Purchases. B. Purchase returns. C. Abnormal shortages. D. Freight-in. 44. Under the retail inventory method: A. A company measures inventory on its balance sheet by converting retail prices to cost. B. A company measures inventory on its balance sheet at current selling prices. C. A company measures inventory on its balance sheet on a LIFO basis. D. None of the above is correct. 45. Under the conventional retail method, which of the following are not included in the denominator of the current period cost-to-retail conversion percentage? A. Purchase returns B. Net markups C. Purchases D. Net markdowns 46. Under the LIFO retail method, which of the following are not included in the denominator of the cost-toretail conversion percentage? A. Freight-in B. Purchase returns C. Purchases D. Net markdowns 47. In determining the cost-to-retail percentage for the current year: A. Net markups are included. B. Net markdowns are excluded. C. Net sales are included. D. All of the above are correct. 48. Fad City sells novel clothes which are subject to a great deal of price volatility. A recent item which cost $20 was marked up $12, marked down for a sale by $6 and then had a markdown cancellation of $3. The latest selling price is: A. $14. B. $26. C. $29. D. $35. Harvey's Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2011: Bloom's: Application AACSB: Analytic 49. The numerator for the current period's cost-to-retail percentage is: A. $64,800. B. $48,100. C. $47,700. D. $49,800. 50. The denominator for the current period's cost-to-retail percentage is: A. $96,300. B. $73,300. C. $101,000. D. $81,500. 51. The estimated ending inventory at retail is: A. $27,300. B. $25,000. C. $26,600. D. $26,400. 52. To the nearest thousand, the estimated ending inventory at cost is: A. $16,000. B. $15,000. C. $13,000. D. $19,000. 53. Lacy's Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2011, would be: A. $68,200. B. $55,000. C. $71,500. D. $63,250. 54. Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2011, would be: A. $330,000. B. $360,000. C. $362,300. D. None of the above is correct. Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2011: 55. The average cost-to-retail percentage is: A. 52.2%. B. 61.5%. C. 56.8%. D. 55%. 56. To the nearest thousand, estimated ending inventory is: A. $55,000. B. $52,000. C. $57,000. D. None of the above is correct. Benny's Bed Co. uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of September 2011. 57. The average cost-to-retail percentage is: A. 74.5%. B. 55.6%. C. 57.4%. D. 58.7%. 58. To the nearest thousand, estimated ending inventory is: A. $41,000. B. $37,000. C. $51,000. D. None of the above is correct. Data below for the year ended December 31, 2011, relates to Houdini Inc. Houdini started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. 59. Current period cost-to-retail percentage is: A. 70.0%. B. 68.7%. C. 63.6%. D. 63.5%. 60. Estimated ending inventory at retail is: A. $65,000. B. $169,600. C. $25,000. D. $129,000. 61. Estimated ending inventory at cost is: A. $90,720. B. $83,500. C. $91,600. D. None of the above is correct. 62. When computing the cost-to-retail percentage for the average cost retail method, included in the denominator are: A. Net markups and net markdowns. B. Neither net markups nor net markdowns. C. Net markups, but not net markdowns. D. Net markdowns, but not net markups. 63. The conventional retail inventory method is based on: A. Average cost B. LIFO cost C. Average, lower of cost or market D. LIFO, lower of cost or market 64. Cloverdale, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: What amount should be reported as cost of goods sold for the year? A. $273,600. B. $272,861. C. $275,000. D. None of the above. Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below: 65. The conventional cost-to-retail percentage (rounded) is: A. 82.6%. B. 66.7%. C. 71.9%. D. 75.5%. 66. To the nearest thousand, estimated ending inventory using the conventional retail method is: A. $37,000. B. $32,000. C. $34,000. D. $30,000. Clarabell Inc. uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below: 67. The conventional cost-to-retail percentage (rounded) is: A. 54.9%. B. 58.9%. C. 53.6%. D. 70.6%. 68. To the nearest thousand, estimated ending inventory using the conventional retail method is: A. $163,000. B. $124,000. C. $127,000. D. $136,000. 69. Using the dollar-value LIFO retail method for inventory: A. Is the same as dollar-value LIFO, except that the inventory is measured at retail, rather than at cost. B. Combines retail LIFO accounting with dollar-value LIFO accounting C. Allows companies to report inventory on the balance sheet at retail prices. D. All of the above are correct. 70. To use the dollar-value LIFO retail method for inventory, the first step is to: A. Determine the estimated ending inventory at current year retail prices. B. Determine the estimated cost of goods sold for the current year. C. Determine the cost-to-retail percentage for the current year transactions. D. Price index adjust the LIFO inventory layers. 71. To use the dollar-value LIFO retail method for inventory, the second step is to determine the estimated: A. Ending inventory at current year retail prices. B. Cost of goods sold for the current year. C. Ending inventory at cost. D. Ending inventory at base year retail prices. 72. To determine if an increase in the dollar value of inventory is due to increased quantities, using dollarvalue LIFO retail: A. Compare beginning and ending inventory amounts at current year prices. B. Compare beginning and ending inventory amounts after adjusting both amounts to the average price level for the year. C. Inflate beginning inventory amount to end of year prices and compare to ending inventory amount. D. Deflate the ending inventory amount to beginning of year prices and compare to the beginning inventory amount. 73. To determine the value of a LIFO layer, using dollar-value LIFO retail: A. Divide the LIFO layer by the layer-year price index and multiply by the layer-year cost-to-retail percentage. B. Multiply the LIFO layer by the base year price index and the current year cost-to-retail percentage. C. Multiply the LIFO layer by the layer-year price index and by the layer-year cost-to-retail percentage. D. Divide the LIFO layer by the layer-year cost-to-retail percentage and multiply by the layer-year price index. 74. Portman Inc. uses the conventional retail inventory method. Expressed in millions of dollars, information about Portman's 2011 inventory account is expressed in the table below: At what amount would Portman record its inventory on its 12/31/11 balance sheet? A. $150 million B. $252 million C. $300 million D. None of the above is correct. 75. Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2010 (its base year). Its beginning inventory for 2011 was $36,000 at cost and $72,000 at retail prices. At the end of 2011, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2011 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/11 balance sheet? A. $64,800 B. $72,000 C. $120,000 D. It can't be determined with the given information. 76. Retrospective treatment of prior years' financial statements is required when there is a change from: A. Average cost to FIFO. B. FIFO to average cost. C. LIFO to average cost. D. All of the above. 77. Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Prunedale's cost of goods sold for this year was: A. Overstated by $94,000. B. Overstated by $30,000. C. Understated by $94,000. D. Understated by $30,000. 78. Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, Prunedale's cost of goods sold for this year was: A. Overstated by $31,000. B. Overstated by $5,000. C. Understated by $31,000. D. Understated by $48,000. On July 10, 2011, Johnson Corporation signed a purchase commitment to purchase inventory for $200,000 on or before February 15, 2012. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2012 and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $210,000. The market price of the inventory on December 31, 2011, was $180,000. The company uses a perpetual inventory system. 79. How much loss on purchase commitment will Johnson recognize in 2011? A. $10,000. B. $20,000. C. $30,000. D. None. 80. At what amount will Johnson record the inventory purchased on February 1, 2012? A. $210,000 B. $200,000 C. $180,000 D. $190,000 Sullivan Corporation. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory is as follows: 81. What should be the carrying value of Sullivan's inventory? A. $500,000. B. $440,000. C. $430,000. D. $490,000. 82. What should be the carrying value of Sullivan's inventory if the company prepares its financial statements according to International Financial Reporting Standards? A. $500,000. B. $440,000. C. $430,000. D. $490,000. 83. When applying the lower-of-cost-or-market rule to inventory valuation according to International Financial Reporting Standards, market always is: A. Replacement cost. B. Net realizable value. C. Net realizable value reduced by a normal profit margin. D. None of the above. 84. Chicago Inc. applies lower-of-cost-or-market valuation to individual products and has collected the following data: Required: Determine the balance sheet inventory carrying value for Products A, B, and C. Novelli's Nursery has developed the following data for lower-of-cost-or-market valuation for its products: The normal profit margin on all trees is 20% of selling price and disposal costs are 10% of selling price. 85. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to individual trees. 86. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of trees. 87. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to the total inventory. Weldon Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its products (in thousands): The normal profit margin on all feed is 25% of selling price and disposal costs are 20% of selling price. 88. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to individual types of feeds. 89. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of feeds. 90. Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to the total inventory. 91. Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $122,500. The following information for the month of August was available from company records: In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Required: 1. Calculate the estimated inventory at the end of August, assuming a gross profit ratio of 30%. 2. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%. 92. On March 17, 2011, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records: Required: Compute the estimated cost of inventory lost in the flood. 93. On July 5, 2011, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records: Required: the Compute estimated cost of inventory lost in the fire. 94. On August 31, 2011, Hurricane Chuck destroyed Bedford Craft Mart's entire inventory. The following information is available from its accounting records: Required: Assuming that Bedford estimates the cost of destroyed inventory at $510,000, compute gross profit margin % that Bedford uses in estimating inventory. 95. Andover Stores uses the average cost retail method to estimate its ending inventory. Information as of June 30, 2011, is as follows: Required: Use the retail method to estimate the June 30, 2011, inventory. 96. DK Super Stores Inc. uses the average cost retail method to estimate its ending inventory. Information at June 30, 2011, is as follows: Required: Compute the cost-to-retail percentage used by DK. 97. Trask Inc. uses the average cost retail method to estimate its ending inventory. Partial information at June 30, 2011, is as follows: Required: Assuming Trask's cost-to-retail = 60%, compute Trask's beginning inventory at retail. 98. Manila Bread Company uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2011: Required: Estimate the ending inventory as of December 31, 2011. 99. Penfold's Paints uses the average cost retail method to estimate its ending inventories. The following data has been summarized for the year 2011: Required: Compute the cost-to-retail percentage used by Penfold's Paints. 100.Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following data has been summarized for December 31, 2011: Required: Estimate the LIFO cost of ending inventory. Assume stable retail prices during the period. 101.Littleton Company uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following partial data has been summarized for December 31, 2011: Required: Determine the cost-to-retail percentage used by Littleton. Assume stable retail prices during the period. 102.Billingsly Products uses the conventional retail method to estimate its ending inventories. The following data has been summarized for the year 2011: Required: Estimate the ending inventory as of December 31, 2011. 103.New York Sales Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2011: Required: Compute the cost-to-retail percentage used by New York Sales Inc. 104.Harley Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2011: Required: Estimate the cost of ending inventory applying the conventional retail method. 105.Zanesville Pots Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for the year ended December 31, 2011: Required: Estimate the cost of ending inventory applying the conventional retail method. 106.Cornhusker Can Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2011: Required: Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts. 107.Cindy Lou Linens uses the conventional retail method to estimate its ending inventories. The company records sales net of employee discounts. The following partial data has been summarized for the year ended December 31, 2011: Required: Compute the net markups for Cindy Lou Linens during 2011. 108.Charleston Company has elected to use the dollar-value LIFO retail method to value its inventory. The following data has been accumulated from the accounting records: Required: Estimate the ending inventory for December 31, 2011. 109.Green Acres Co. has elected to use the dollar-value LIFO retail method to value its inventory. The following data has been accumulated from the accounting records: Required: Estimate the cost of ending inventory for December 31, 2011. 110.Orlando Company has used the average cost method for inventory valuation since it began business in 2007, but has elected to change to the FIFO method starting in 2010. Year-end inventory valuations under each method are shown below: Required: How would Orlando reflect the change in accounting principle in its financial statements (ignore income taxes)? 111.Ramsgate Company has used the FIFO method for inventory valuation since it began business in 2007, but has elected to change to the average cost method starting in 2010. Year-end inventory valuations under each method are shown below: Required: How, and when, would Ramsgate reflect the change in accounting principle in its financial statements (ignore income taxes)? In the following questions, inventory errors are noted for 2011. Assume that the errors are not discovered until 2012, and that the company uses a periodic inventory system. Indicate the effect of the error, if any, on the accounts noted in the columns, using the following code: U = Understated; O = Overstated; NE = No effect 112. 113. 114. 115. 116. 117.In the year 2011, the internal auditors of Blooper Inc. discovered that goods costing $12 million that were shipped f.o.b. shipping point in December of 2010 were in transit on December 31. The goods were recorded as a purchase in December of 2010 but were not included in the 2010 year-end inventory. Required: Prepare the journal entry needed in 2011 to correct the error. Also, briefly describe any other measures Blooper would take in connection with correcting the error. (Ignore income taxes.) 118.In the year 2011, the internal auditors of Goofy Co. discovered that goods costing $25 million that were purchased in December of 2010 were recorded for $20 million. The goods were properly measured in the December 31, 2010 ending physical inventory. Required: Prepare the journal entry needed in 2011 to correct the error. Also, briefly describe any other measures Goofy would take in connection with correcting the error. (Ignore income taxes.) 119.On September 5, 2011, Howard Corporation signed a purchase commitment to purchase inventory for $130,000 on or before March 31, 2012. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2012 and the inventory was purchased for cash at the contract price. On the purchase date of March 4, the market price of the inventory was $116,000. The market price of the inventory on December 31, 2011, was $120,000. The company uses a perpetual inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2011. 2. Prepare the journal to record the purchase on March 4, 2012. Memphis Wholesale Market applies lower-of-cost-or-market valuation to individual products and has collected the following data: 120.Determine the balance sheet inventory carrying value for Products A, B, and C. 121.Determine the balance sheet inventory carrying value for Products A, B, and C assuming that Memphis Wholesale Market prepares its financial statements according to International Financial Reporting Standards. Instructions: The following answers point out the key phrases that should appear in students' answers. They are not intended to be examples of complete student responses. It might be helpful to provide detailed instructions to students on how brief or in-depth you want their answers to be. 122.Briefly explain what is meant by "market" in the lower-of-cost-or-market (LCM) approach. 123.Briefly explain how a material adjustment to inventory due to application of the lower-of-cost-or-market rule should be reported in the financial statements. 124.The following disclosure note appeared in the 2011 Annual report to shareholders of Upton Systems Inc. Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company provides inventory allowances based on excess and obsolete inventories. Another disclosure note in the annual report stated: The Company recorded a provision for inventory, including purchase commitments, totaling $1.40 billion during fiscal 2011, which included an additional excess inventory charge as previously discussed. This additional excess inventory charge was due to a sudden and significant decrease in demand for the Company's products and was calculated in accordance with the Company's accounting policy. A skeptic may conclude that Upton's policy and practices threaten earnings quality. Discuss how it may do so. 125.Briefly explain the differences between U.S. GAAP and International Financial Reporting Standards in the application of the lower-of-cost-or-market rule for valuing inventory. 126.Briefly outline the steps in the gross profit method of estimating ending inventory and indicate when the method might be used. 127.The gross profit method and retail method are both ways of estimating ending inventory. Briefly explain how the two methods differ. 128.Briefly explain the difference between the LIFO retail method and the dollar-value LIFO retail method. 129.Briefly explain the financial reporting required when a company changes to or from the LIFO inventory method. 130.Briefly explain the financial reporting required when material misstatements are found in previous years' financial statements that are included for comparative purposes in the current year's financial statements. 131.Symington and Cribbs (S&C) is a sporting goods distributor. S&C uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count. For the fiscal year-end December 31, 2011, ending inventory was originally determined to be $67 million. However, in early January of 2012, the company's controller, Amy Grant, discovered that an error was made in the inventory count. The correct amount of ending inventory should be $87 million. The auditors did not discover the error and the financial statements are scheduled to be issued on February 26, 2012. S&C is a public company. Amy's first reaction was to communicate her finding to the auditors and to revise the financial statements before they are issued. However, she knows that this was a very good year for the company with profits far exceeding analysts' expectations. If the error is not corrected this year, it will self-correct next year as long as 2012 ending inventory is correctly stated. This will help future 2012 profits. On the other hand, her fellow workers' profit sharing plans are based on annual pretax earnings and if she revises the statements, everyone's profit sharing bonus will be higher this year. Required: 1. Is Amy correct by stating that the error will self-correct next year as long as 2012 ending inventory is correctly stated? If the error is not corrected in the current year, what will be the effect on 2011 and 2012 income before tax? 2. Discuss the ethical dilemma Amy faces. ch09 Key 1. FALSE 2. TRUE 3. FALSE 4. TRUE 5. FALSE 6. FALSE 7. TRUE 8. FALSE 9. TRUE 10. FALSE 11. FALSE 12. TRUE 13. FALSE 14. TRUE 15. TRUE 16. Gross profit method :: Estimates value of inventory based on historical relationships. and Change from LIFO to FIFO :: Requires retrospective treatment. and Net markup :: Added in arriving at ending inventory at retail. and LIFO retail :: Beginning inventory is not included in the calculation of the current period's cost-to-retail percentage. and Retrospective treatment :: Required for a change from FIFO to average cost. 17. Requires retrospective treatment :: Change from LIFO to FIFO. and Average cost retail method :: Cost-to-retail percentage is determined for all goods available for sale. and Normal spoilage :: Always deducted after arriving at the calculation of the cost-to-retail percentage. and Net markdown :: Deducted in arriving at ending inventory at retail. and Cost-to-retail percentage :: Divide cost of goods available for sale by goods available at retail. 18. Markdown cancellation :: Elimination of a price reduction. and Gross profit ratio :: Gross profit divided by sales. and Markup on cost :: Gross profit divided by cost. and Normal profit margin :: Gross profit percentage times selling price. and Retail inventory method :: Ideal for high volume, low cost inventory. 19. Additional markup :: Increase in selling price. and LCM :: Losses would be recognized when values decline. and Conventional retail method :: Markdowns are not in the calculation of the cost-to-retail percentage. and Replacement cost :: Market if between ceiling and floor. and Requires retrospective restatement :: Material inventory error discovered in a subsequent year. 20. Employee discounts :: Must be added to sales if sales are recorded net of discounts. and Floor in LCM approach :: NRV less "normal" profit. and Initial markup :: Original increase in selling price above cost. and Conventional retail method :: Approximates lower of average cost or market. and Inventory error, example :: Purchases are unrecorded. 21. Markdown :: Reduction in selling price. and Dollar-value LIFO retail method :: Requires base year retail to be converted to layer year retail and then to cost. and Disposal costs :: Deducted from selling price when calculating ceiling. and NRV :: Upper limit or ceiling in LCM approach. and Change to LIFO from FIFO :: Usually impossible to calculate the effect on prior years' financial statements. 22. Markdown :: Reduction in selling price below the original selling price. and Dollar-value LIFO retail :: Requires base year retail to be converted to layer year retail and then to cost. and Change from LIFO :: Accounting change requiring retrospective treatment. and Net realizable value :: Ceiling in the determination of market. and Change to LIFO from FIFO :: Usually impossible to calculate the effect on prior years' financial statements. and Conventional retail method :: Average cost, LCM. and Gross profit method :: Not acceptable for the preparation of annual financial statements. and Employee discounts :: Must be added to sales if sales are recorded net of discounts. and Normal spoilage :: Deducted in the retail column after the calculation of the cost-to-retail percentage. and Cost-to-retail percentage :: Divide cost of goods available for sale by goods available at retail. 23. D 24. A 25. C 26. C 27. B 28. C 29. C 30. D 31. D 32. D 33. C 34. B 35. A 36. C 37. D 38. C 39. C 40. B 41. C 42. A 43. D 44. A 45. D 46. A 47. A 48. C 49. D 50. B 51. B 52. A 53. A 54. B 55. D 56. A 57. B 58. D 59. A 60. D 61. B 62. A 63. C 64. C 65. B 66. D 67. A 68. C 69. B 70. C 71. D 72. D 73. C 74. A 75. D 76. D 77. A 78. C 79. B 80. C 81. B 82. D 83. B 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. 110. Orlando would revise prior years' financial statements. That is, for each year reported in the comparative statements, Orlando makes those statements appear as if the newly adopted accounting method (FIFO) had been applied all along. For example, had Orlando used FIFO all along, the Cost of Goods Sold for 2007 would have been $5,000 less ($47,000 in ending inventory, rather than $42,000) than what was previously reported using average cost. 111. Ramsgate would revise prior years' financial statements. That is, for each year reported in the comparative statements, Ramsgate makes those statements appear as if the newly adopted accounting method (FIFO) had been applied all along. For example, had Ramsgate used average cost all along, the Cost of Goods Sold for 2007 would have been $3,000 more ($46,000 in ending inventory, rather than $49,000) than what was previously reported using FIFO. 112. 113. 114. Note: Both purchases and ending inventory are understated. 115. 116. Also, a disclosure note should describe the nature of the error and the impact of its correction on each year's net income, income before extraordinary items, and earnings per share. Because retained earnings is one of the accounts incorrect, the correction to that account is reported as a prior period adjustment to the 2011 retained earnings balance in the comparative statements of shareholders' equity. The 2010 financial statements that were incorrect as a result of the error would be retroactively restated to reflect the correct cost of goods sold, (income tax expense, if taxes are considered), net income, ending inventory, and retained earnings when those statements are reported again for comparative purposes in the 2011 annual report. 117. Also, a disclosure note should describe the nature of the error and the impact of its correction on each year's net income, income before extraordinary items, and earnings per share. Because retained earnings is one of the incorrect accounts, the correction to that account is reported as a prior period adjustment to the 2011 retained earnings balance in the comparative statements of shareholders' equity. The 2010 financial statements that were incorrect as a result of the error would be retroactively restated to reflect the correct cost of goods sold, (income tax expense if taxes are considered), net income, accounts payable, and retained earnings when those statements are reported again for comparative purposes in the 2011 annual report. 118. 119. **NRV less normal profit margin * Selling price less disposal costs 120. ** Lower of cost or NRV * Selling price less disposal costs 121. 122. "Market" as used in the LCM rule is the number that is compared to cost in determining the LCM carrying value of inventories. Market is the middle number of replacement cost, NRV (the ceiling) and NRV less a normal profit margin (the floor). If replacement cost exceeds the ceiling price, then ceiling becomes the market. If replacement cost is less than the floor price, then the floor becomes market. The ceiling and floor limits are established to prevent profit distortion by limiting the amount of loss recognized when the value of inventory declines below its cost. 123. A material LCM loss should be reported as a separately stated item in the income statement in arriving at income from continuing operations. Including the loss as a component of cost of goods sold is another alternative, but if the write-down is material, this approach distorts the relationship between sales and cost of goods sold. Cookie jar reserve: By establishing a large allowance for inventory obsolescence, Upton could manage future earnings by systematic changes in the allowance estimates. Big bath: By taking a big write-down for inventory in a period when the company is doing poorly, it clears the way for improvement in earnings in future periods. 124. Two possibilities stand out: 125. When applying the lower-of-cost-or-market rule for valuing inventory according to U.S. GAAP, market is defined as replacement cost with a ceiling of net realizable value (NRV) and a floor of NRV less a normal profit margin. However, the designated market value according to IFRS always is net realizable value. IAS No. 2 also specifies that if circumstances reveal that an inventory write-down is no longer appropriate, it must be reversed. Reversals are not permitted under U.S. GAAP. Under U.S. GAAP, the LCM rule can be applied to individual items, logical inventory categories, or the entire inventory. Using the international standard, the LCM assessment usually is applied to individual items, although using logical inventory categories is allowed under certain circumstances. 126. The gross profit method estimates cost of goods sold based on the historical gross profit percentage. The estimated cost of goods sold is subtracted from the total cost of goods available for sale to arrive at an estimated ending inventory. The method is not acceptable for the preparation of annual financial statements but it is used to estimate inventory and cost of goods sold for interim reports and to estimate losses of inventory. It is a good technique to test reasonableness of reported gross profit and ending inventories. 127. Both the gross profit method and retail method rely on the relationship between cost of sales and net sales. The gross profit method uses historical gross profit data, while the retail method uses current data to develop the relationship of cost to net sales. Unlike the gross profit method, the retail method may be used for the preparation of annual financial statements. 128. Dollar-value LIFO retail eliminates the stable price assumption of LIFO retail. It is a combination of dollar-value LIFO and LIFO retail. The ending retail inventories are deflated to base year prices using the appropriate DVL index. New current year layers are then inflated back to current year prices. The cost of the new layer is then determined by applying the LIFO retail cost-to-retail percentage for the current year. Estimated ending inventory is the sum of layers that have been converted to cost. 129. A change to the LIFO method simply requires note disclosure in the year of the change and use of LIFO from that point onward. The opening inventory in the year of the change becomes the initial LIFO base. No retrospective treatment of prior years' statements is made since it is typically impossible to determine the retroactive effect. A change from LIFO to any other method requires retrospective treatment of prior years' financial statements that are presented for comparative purposes in the year of the change. 130. Material errors in prior years require prior period adjustments in the current year and restatement of prior years' financial statements that are presented for comparative purposes in the year that the error was discovered. The beginning balance of retained earnings in the earliest balance sheet affected in the comparative financial statements is corrected net of any tax affect. The subsequent statements are then restated with the corrected information. 2. Should Amy recognize her obligation to disclose the inventory error to S&C shareholders, auditors, and taxing authorities or remain quiet thus enabling the company to manage its earnings and shift $20 million in before tax profits to the following year? If Amy remains quiet, she and other employees will receive lower year-end bonuses this year, but higher bonuses next year. If eventually discovered by the auditors in 2012, they will require the company to restate the 2011 financial statements to reflect the correct inventory amount. 131. 1. Yes, Amy is correct. If the error is not corrected in 2011, ending inventory will be $20 understated causing cost of goods sold to be $20 million overstated and income before tax to be $20 understated. However, since beginning inventory for 2012 will be $20 million overstated, cost of goods sold will be overstated and income before tax will be $20 million understated. The error would cause an income shift from 2011 to 2012. ch09 Summary Category AACSB: Analytic AACSB: Diversity AACSB: Reflective thinking Blooms: Analysis Blooms: Application Blooms: Comprehension Blooms: Knowledge Blooms: Synthesis Learning Objective: 09-01 Understand and apply the lower-of-cost-or-market rule used to value inventories. Learning Objective: 09-02 Estimate ending inventory and cost of goods sold using the gross profit method. Learning Objective: 0903 Estimate ending inventory and cost of goods sold using the retail inventory method; applying the various cost flow methods. Learning Objective: 09-04 Explain how the retail inventory method can be made to approximate the lower-of-cost-or-market rule. Learning Objective: 09-05 Determine ending inventory using the dollar-value LIFO retail inventory method. Learning Objective: 09-06 Explain the appropriate accounting treatment required when a change in inventory method is made. Learning Objective: 09-07 Explain the appropriate accounting treatment required when an inventory error is discovered. Learning Objective: 09-08 Discuss the primary differences between U.S. GAAP and IFRS with respect to the lower-of-cost-ormarket rule for valuing inventory. Learning Objective: Appendix Level of Learning: Easy Level of Learning: Hard Level of Learning: Medium Spiceland - Chapter 09 # of Questions 80 2 51 8 72 13 37 1 34 11 30 15 10 6 11 5 5 28 64 32 146

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Community College of Baltimore County - ACCT - 201
ch10Student: _1. 2. 3.Property, plant, and equipment and intangible assets are long-term, revenue producing assets. True False Sales tax paid on equipment acquired for use in the business is not capitalized. True False Demolition costs to remove an old
Community College of Baltimore County - ACCT - 201
ch07Student: _1.Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months. True False From a financial accounting perspective, the main purposes of a system
Community College of Baltimore County - ACCT - 201
ch05Student: _1.Revenue is not recognized under the realization principle unless the earnings process is complete or virtually complete and there is reasonable certainty about collectibility of the asset received. True False Under IFRS, revenue from pr
Community College of Baltimore County - ACCT - 201
ch04Student: _1. 2.Income from continuing operations sometimes includes gains from nonoperating activities. True False Intraperiod tax allocation is the process of associating income tax effects with the income statement components that create those ef
Community College of Baltimore County - ACCT - 201
ch08Student: _1. 2.Physical counts of inventory are never done with perpetual inventory systems. True False The main difference between perpetual and periodic inventory systems is the timing of the allocation of costs between inventory and cost of good
Community College of Baltimore County - ACCT - 201
ch19Student: _1. 2.GAAP requires using intrinsic value accounting for employee stock options. True False If previous experience indicates that a material number of stock options will be forfeited before they vest, the fair value estimate of the options
Community College of Baltimore County - ACCT - 201
ch17Student: _1. 2.The projected benefit obligation may be less reliable than the accumulated benefit obligation. True False The amount of the vested benefit obligation is less than the projected benefit obligation and more than the accumulated benefit
Community College of Baltimore County - ACCT - 201
ch18Student: _1. 2.Mandatorily redeemable preferred stock is reported as a liability. True False Noncash assets received as consideration for the issue of stock are always valued based on the fair value of the stock. True False Treasury stock transacti
Community College of Baltimore County - ACCT - 201
ch21Student: _1.Amounts held in cash equivalent investments must be reported separately from amounts held as cash in the statement of cash flows. True False If the direct method is used to report cash flows from operating activities in the body of the
Community College of Baltimore County - ACCT - 201
ch15Student: _1.At the inception of a lease agreement, the company's debt to equity ratio and rate of return on assets are both affected whether the lease is classified as a capital lease or as an operating lease. True False Capital leases are agreemen
Community College of Baltimore County - ACCT - 201
ch12Student: _1.Securities classified as held to maturity could be reported as either current or long-term in a classified balance sheet, depending upon their maturity dates. True False All investments in debt securities whose fair values are not readi
Community College of Baltimore County - ACCT - 201
ch14Student: _1. 2.The specific provisions of a bond issue are described in a document called a bond indenture. True False Periodic interest expense is the stated interest rate times the amount of debt outstanding during the period. True False The carr
Community College of Baltimore County - ACCT - 201
ch06Student: _1. 2. 3. 4.Compound interest includes interest earned on interest. True False When interest is compounded, the stated rate of interest exceeds the effective rate of interest. True False The calculation of future value requires the removal
Community College of Baltimore County - ACCT - 201
Chapter 13 - Current Liabilities and ContingenciesChapter 13 Current Liabilities and ContingenciesTrue / False Questions1. Some liabilities are not contractual obligations and may not be payable in cash. True False2. Amounts withheld from employees in
Community College of Baltimore County - ACCT - 201
Chapter 20 - Accounting Changes and ErrorsChapter 20 Accounting Changes and ErrorsTrue / False Questions1. Most, but not all, changes in accounting principle are reported using the retrospective approach. True False2. Prior years' financial statements
Community College of Baltimore County - ACCT - 201
Chapter 16 - Accounting for Income TaxesChapter 16 Accounting for Income TaxesTrue / False Questions1. A temporary difference originates in one period and reverses, or turns around, in one or more later periods. True False2. Expenditures currently ded
Community College of Baltimore County - ACCT - 201
Chapter 03 - The Balance Sheet and Financial DisclosuresChapter 03 The Balance Sheet and Financial DisclosuresTrue / False Questions1. The balance sheet reports a company's financial position at a point in time. True False2. A company's market value i
Community College of Baltimore County - ACCT - 201
Chapter 02 - Review of the Accounting ProcessChapter 02 Review of the Accounting ProcessTrue / False Questions1. Owners' equity can be expressed as assets minus liabilities. True False2. Debits increase asset accounts and decrease liability accounts.
Community College of Baltimore County - ACCT - 201
Chapter 01 - Environment and Theoretical Structure of Financial AccountingChapter 01 Environment and Theoretical Structure of Financial AccountingTrue / False Questions1. The primary function of financial accounting is to provide relevant financial inf
Community College of Baltimore County - ACCT - 225
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents many examples of joint products from four different general industries. These include: IndustrySeparable Products at the Splitoff Point Food Processing: Lamb Lamb cuts, t
Community College of Baltimore County - ACCT - 225
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-1 No. Capital budgeting focuses on an individual investment project throughout its life, recognizing the time value of money. The life of a project is often longer than a year. Accrual accounting focuses o
Community College of Baltimore County - ACCT - 225
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects
Community College of Baltimore County - ACCT - 225
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing only variable manufacturing costs are inc
Community College of Baltimore County - ACCT - 225
CHAPTER 14 COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 14-1 Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operating a
Community College of Baltimore County - ACCT - 225
CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 a. b. c. d. The budgeting cycle includes the following elements: Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is
Community College of Baltimore County - ACCT - 225
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-1 Managers have found that improved quality and intolerance for high spoilage have lowered overall costs and increased sales. 18-2 Spoilageunits of production that do not meet the standards required by customers f
Community College of Baltimore County - ACCT - 225
CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will chang
Community College of Baltimore County - ACCT - 225
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps man
Community College of Baltimore County - ACCT - 225
CHAPTER 19 BALANCED SCORECARD: QUALITY, TIME, AND THE THEORY OF CONSTRAINTS 19-1 Quality costs (including the opportunity cost of lost sales because of poor quality) can be as much as 10% to 20% of sales revenues of many organizations. Quality-improvement
Community College of Baltimore County - ACCT - 225
CHAPTER 10 DETERMINING HOW COSTS BEHAVE 10-1 1. 2. The two assumptions are Variations in the level of a single activity (the cost driver) explain the variations in the related total costs. Cost behavior is approximated by a linear cost function within the
Community College of Baltimore County - ACCT - 225
CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or serv
Community College of Baltimore County - ACCT - 225
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income3-1 Cost-volume-profit (CVP) analysis examines the beha
Community College of Baltimore County - ACCT - 225
CHAPTER 23 PERFORMANCE MEASUREMENT, COMPENSATION, AND MULTINATIONAL CONSIDERATIONS 23-1 Examples of financial and nonfinancial measures of performance are: Financial: ROI, residual income, economic value added, and return on sales. Nonfinancial: Customer
Community College of Baltimore County - ACCT - 225
CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17-2 Pr
Community College of Baltimore County - ACCT - 225
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2-2 Dir
Community College of Baltimore County - ACCT - 225
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 1. 2. 3. 4. 5. The five steps in the decision process outlined in Exhibit 11-1 of the text are Identify the problem and uncertainties Obtain information Make predictions about the future Make decisi
Community College of Baltimore County - ACCT - 225
CHAPTER 4 JOB COSTING 4-1 Cost poola grouping of individual cost items. Cost tracingthe assigning of direct costs to the chosen cost object. Cost allocationthe assigning of indirect costs to the chosen cost object. Cost-allocation basea factor that links
Community College of Baltimore County - ACCT - 225
CHAPTER 20 INVENTORY MANAGEMENT, JUST-IN-TIME, AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net inco
Community College of Baltimore County - ACCT - 225
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-1 Broad averaging (or "peanut-butter costing") describes a costing approach that uses broad averages for assigning (or spreading, as in spreading peanut butter) the cost of resources uniform
Community College of Baltimore County - ACCT - 225
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 13-2 The five key forces to cons
Community College of Baltimore County - ACCT - 225
CHAPTER 1 THE ACCOUNTANT'S ROLE IN THE ORGANIZATION See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures, analyzes and reports financial and nonfin
Community College of Baltimore County - ACCT - 225
CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS 22-1 A management control system is a means of gathering and using information to aid and coordinate the planning and control decisions throughout an organization an
Accreditation Commission for Acupuncture and Oriental Medicine - MEDICINE - 100
16.Embarazo mltiple 17.Cardiopatas y embarazo 18.Colestasia intraheptica del embarazo 19.Infecciones y embarazoBoletn Perinatalndice Captulos20.Neurologa y embarazo 21.Trombofilias y embarazo 22.Muerte fetal in tero1.Presentacin 2.Indicadores en salud
GA Southern - HLTH - 1520
Chapter !2, & 13. CVD FACTS - nearly one million americans dieting each year from coronary heart disease. - approx. 1/2 of these deaths are due to sudden heart attacks. - out of the 1/2 , most die within two hours of the onset symptoms. CVD RISK FACTORS -
SUNY Farmingdale - ACCOUNTING - 202
CONTENTSPreface to the Instructor Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 2
Ventura College - ECON - 101
Quiz #1Attempt 1Written: Jun 23, 2010 12:29 AM - Jun 27, 2010 6:06 PMSubmission View1 / 1 point An increase in efficiency means that an economy has: increased the equity of its distribution of goods and services. increased the incentives for its citiz
Berkeley - CHEMISTRY - 3AL
Lab 8: Identification of an Adulterated Herb or Spice by Thin Layer Chromatography Discussion: 1. On plate 4, we analyzed samples 517, 518, 519, and 520. This TLC plate revealed that 520 (the adulterated compound) had an Rf value similar to one of the spo
Berkeley - CHEMISTRY - 3AL
1 Hardy Lab 9: What do you Take for Pain? Discussion The acid-base chemistry involved in this experiment was between the sodium naproxen in the pill and the sulfuric acid I added to the supernatant after centrifuging the mixture of the Aleve pill in water
UC Irvine - CHEM - 51LB
EXPERIMENT 3 STEREOCHEMISTRY OF BROMINE ADDITION TO TRANS-CINNAMIC ACID REACTION: Bromination of an Alkene TECHNIQUES: Microscale Reflux, Recrystallization In this experiment, we will learn how experimental results can be used to propose a reaction mechan
FAU - PHYS - 2048
Natasha Tavares January 24, 2011 PHY 2048LE xperiment I M ass, Volume and Density January 24, 2011P urpose:1. To become familiar with basic measurement tools such as the veniercaliper, micrometer and weighing balance.2. To learn how to use the concep
FAU - PHYS - 2048
Natasha Tavares January 28, 2011 PHY 2048LExperiment 2 Acceleration due to Gravity January 28, 2011Purpose:1. To measure acceleration of a falling object. Making sure that the onlyforce on the object is the gravitational force. Theory: The density of
FAU - PHYS - 2048
Natasha Tavares February 5, 2011 PHY 2048L 004Experiment 3 Projectile Motion February 5, 2011Purpose:1. To measure and verify the flight range and time of a ball launched atan angle . Theory: Two equations can describe the projectile motion. is the an
Boise State - MRKT - 301
Chapter 2: Marketing PlanningStrategic planning: is the process of determining an organizations primary objectives, allocating funds, and the initiating actions designed to achieve those objectives. It focuses on the big picture of which industries are c
Boise State - MRKT - 301
Chapter 9: Segmentation & Positioning A market consists of people and organizations with the necessary purchasing power, willingness, and authority to buy. Consumer products: are purchased by the ultimate consumer for personal use (magazine, coffee, cell
Boise State - MRKT - 301
C ancer I nformationJohn SmithT able of F iguresC ancer OverviewCancer is one of the scariest words in the English language. When you hear the word as part of a diagnosis, its natural to feel many emotions, especially fear.What is cancer?Cancer is a
Boise State - MRKT - 301
Sports Medicine Clinic 997 Foster Lane, Pittsburgh, PA 15697AddressBlockPlease remember that you have an appointment at the Sports Medicine Clinic on Appt_day, Appt_date, at Appt_time. If you have paperwork to fill out, please arrive at our office 15 mi
Boise State - MRKT - 301
Sports Medicine Clinic 997 Foster Lane, Pittsburgh, PA 15697Dewey Francani800 North StreetPittsburgh, PA 15697Please remember that you have an appointment at the Sports Medicine Clinic on Monday, 9/8/2008, at 8:00:00 AM. If you have paperwork to fill
Boise State - MRKT - 301
Welcome aboard! Thank you for flying Sunset Airlines, the newest airline with destinations to popular vacation spots, such as Las Vegas, Orlando, and Miami. Whether youre flying to Las Vegas to try your luck at the casinos or flying to New York City to se
Boise State - MRKT - 301
to display ourSunset Airlines on-time records. When you get ready to take a trip, you can feel confident that we ll get you there on-time!Lets Go!As Nice as Riding into the SunsetForamoreenjoyableflight,pleasepayspecial attentiontothefollowingregulatio
Boise State - MRKT - 301
From Denver Denver Denver Denver Denver Denver Denver DenverFlight 123 159 324 568 654 668 753 845To % on time Las Vegas 98 Kansas City 97 Orlando 93 Los Angeles 93 New York 97 Miami 94 Chicago 85 Dallas 99Sunset Airlines On-Time Perc105 100 95 90 85
Boise State - ITM - 104
Travel Reimbursement FormFor Authorized ExpensesName: Hong Nguyen Office Phone: (555) 555-0001 Request Date: 3/6/2010Department: Sales-Western Division Purpose of Trip: Departure Date: Client meeting 9/19/2009Return Date: 9/21/2009Transportation:Shu