3bsolutions6

3bsolutions6 - 6-1 CHAPTER 6 Reporting and Analyzing...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 6-1 CHAPTER 6 Reporting and Analyzing Inventory Study Objectives 1. Describe the steps in determining inventory quantities. 2. Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. 3. Explain the financial statement and tax effects of each of the inventory cost flow assumptions. 4. Explain the lower of cost or market basis of accounting for inventories. 5. Compute and interpret the inventory turnover ratio. 6. Describe the LIFO reserve and explain its importance for comparing results of different companies. Summary of Questions by Study Objectives and Blooms Taxonomy Item SO BT Item SO BT ItemSO BT ItemSO BT ItemSO BT Questions 1. 1 C 6. 2 AP 11. 2 K 16. 4 AP 21. 6 C 2. 1 K 7. 2 C 12. 3 C 17. 4 K 22. 7 C 3. 1 K 8. 2 C 13. 3 C 18. 2 K 23. 7 C 4. 1 C 9. 2 K 14. 3 C 19. 3 C 24. 8 AN 5. 1 C 10. 2 C 15. 4 C 20. 5 AN Brief Exercises 1. 1 C 3. 2 AP 5. 3 AP 7. 5 AP 9. 7 AP 2. 2 AP 4. 3 C 6. 4 AP 8. 6 C 10. 8 AN Exercises 1. 1 AN 4. 2 AN 7. 2, 3 AP 10. 5, 6 AP 13. 8 AN 2. 1 AN 5. 2 AP 8. 5 AP 11. 7 AP 14. 8 AN 3. 1 K 6. 2, 3 AN 9. 4 AP 12. 7 AP Problems: Set A 1. 1 AN 3. 2, 3 AP 5. 2, 3 AP 7. 5, 6 AP 9. 3, 7 AP 2. 2, 3 AP 4. 2, 3 AN 6. 2, 3 AP 8. 3, 7 AP Problems: Set B 1. 1 AN 3. 2, 3 AP 5. 2, 3 AP 7. 5, 6 AP 9. 3, 7 AP 2. 2, 3 AP 4. 2, 3 AN 6. 2, 3 AP 8. 3, 7 AP 6-2 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description DifficultyLevel Time Allotted (min.)1A Determine items and amounts to be recorded in inventory. Moderate 1520 2A Determine cost of goods sold and ending inventory using FIFO, LIFO, and average cost with analysis. Simple 3040 3A Determine cost of goods sold and ending inventory using FIFO, LIFO, and average cost in a periodic inventory system, and assess financial statement effects. Simple 3040 4A Compute ending inventory, prepare income statements, and answer questions using FIFO and LIFO. Moderate 3040 5A Calculate ending inventory, cost of goods sold, gross profit, and gross profit rate under periodic method; compare results. Moderate 3040 6A Compare specific identification, FIFO, and LIFO under periodic method; use cost flow assumption to influence earnings. Moderate 2030 7A Compute inventory turnover ratio and days in inventory: compute current ratio based on LIFO and after adjusting for LIFO reserve. Moderate 2030 *8A Calculate cost of goods sold and ending inventory for LIFO, FIFO, and average cost under the perpetual system; compare gross profit under each assumption. Moderate 3040 *9A Determine ending inventory under a perpetual inventory system. Moderate 3040 1B Determine items and amounts to be recorded in inventory. Moderate 1520 2B Determine cost of goods sold and ending inventory using FIFO, LIFO, and average cost with analysis....
View Full Document

Page1 / 70

3bsolutions6 - 6-1 CHAPTER 6 Reporting and Analyzing...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online