ORIE_3150_Homework__4_fall_2008

ORIE_3150_Homework__4_fall_2008 - ORIE 3150 Homework #4 Due...

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ORIE 3150 Homework #4 Due October 7, 2008 1. LIFO inventory costing is not allowed in the United Kingdom (UK). Thus, all companies based there use FIFO. You are examining the financial statements from Leicester Manufacturing, a UK firm. Inventory replenishment costs have varied somewhat over the past two years. Which will be more accurate, the Inventory account on the balance sheet, or the Cost of Goods Sold figure on the income statement? Explain briefly. 2. The Boswell Boat Supply Company has three inventory items on hand. Boswell has found that the items would need to be refurbished before they could be sold, and the replacement cost of each of these items has changed. Boswell Company may need to adjust the inventory cost of the items. Find the correct cost for each item, and provide the journal entry needed (if any) to make the adjustment in their financial records. Item Number of units on hand Historical Cost per unit Replacement Cost per unit Selling Price per unit Normal Profit per
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ORIE_3150_Homework__4_fall_2008 - ORIE 3150 Homework #4 Due...

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