ch08 - CHAPTER 8 Valuation of Inventories: A Cost-Basis...

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Unformatted text preview: CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) A Topics T Question s Brief Exercise s Exercise s Problems Conceptsfor Analysis 1. Inventory accounts; determini ng quantities, costs, and items to be included in inventory; the inventory equation; balance sheet disclosure . 1, 2, 3, 4, 5, 6, 8, 9 1, 3 1, 2, 3,4, 5, 6 1, 2, 3 1, 2, 3, 5, 11 2. Perpetual vs. periodic. 2 9, 13, 14, 17, 20 4, 5, 6 3. Recording of discounts. 10, 11 7, 8 3 4 4. Inventory errors. 7 4 2, 3, 4, 5, 10, 11, 12 2 5. Flow assumptio ns. 12, 13, 16, 18, 20 5, 6, 7 9, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 1, 4, 5, 6, 7 5, 6, 7, 8 6. Inventory accountin g changes. 18 7 6, 7, 10 7. Dollar- value 14, 15, 17, 18, 19 8, 9 22, 23, 24,25, 26 1, 8, 9, 10, 11 8, 9 LIFO methods. ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives Brief Exercises Exercises Problems 1. Identify major classifications of inventory. 1 2. Distinguish between perpetual and periodic inventory systems. 2 4, 9, 13, 17, 20 4, 5, 6 3. Identify the effects of inventory errors on the financial statements. 4 5, 10, 11, 12 4. Understand the items to include as inventory cost. 3 1, 2, 3, 4, 5, 6, 7, 8 1, 2, 3 5. Describe and compare the cost flow assumptions used to account for inventories. 5, 6, 7 9, 13, 14, 15, 16, 17, 18, 19, 20, 22 1, 4, 5, 6, 7 6. Explain the significance and use of a LIFO reserve. 21 7. Understand the effect of LIFO liquidations. 8. Explain the dollar-value LIFO method. 8, 9 22, 23, 24, 25, 26 1, 8, 9, 10, 11 9. Identify the major advantages and disadvantages of LIFO. 10. Understand why companies select given inventory methods. ASSIGNMENT CHARACTERISTICS TABLE Item Description Level of Difficulty Time (minutes) E8-1 Inventoriable costs. Moderate 1520 E8-2 Inventoriable costs. Moderate 1015 E8-3 Inventoriable costs. Simple 1015 E8-4 Inventoriable costs perpetual. Simple 1015 E8-5 Inventoriable costserror adjustments. Moderate 1520 E8-6 Determining merchandise amounts periodic. Simple 1020 E8-7 Purchases recorded net. Simple 1015 E8-8 Purchases recorded, gross method. Simple 2025 E8-9 Periodic versus perpetual entries. Moderate 1525 E8-10 Inventory errors, periodic. Simple 1015 E8-11 Inventory errors. Simple 1015 E8-12 Inventory errors. Moderate 1520 E8-13 FIFO and LIFO periodic and perpetual. Moderate 1520 E8-14 FIFO, LIFO and average cost determination. Moderate 2025 E8-15 FIFO, LIFO, average cost inventory. Moderate 1520 E8-16 Compute FIFO, LIFO, average cost periodic. Moderate 1520 E8-17 FIFO and LIFO; periodic and perpetual. Simple 1015 E8-18 FIFO and LIFO; income statement presentation....
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