I-08.03 Problem

I-08.03 Problem - I-08.03 Ali Naeem was recently placed in...

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I-08.03 Ali Naeem was recently placed in charge of inventory accounting for Sialkot Surgical Supply. This company is located in Pakistan and deals in surgical supplies for global export. The company has been using the last-in, first-out inventory method applied on a perpetual basis. The company's export trade is denominated and settled in dollars, and that currency is used within the company's ledger. Ali's responsibility is to bring Sialkot Surgical's inventory accounting into conformity with international accounting standards that have been embraced by the Institute of Chartered Accountants of Pakistan. As a result of his research, Ali was surprised to learn that LIFO does not have global acceptance and it is not a GAAP method in his country. Below is January's preliminary inventory schedule for surgical clamps. This schedule was prepared on a LIFO basis. Date Purchases Sales Cost of Goods Sold Balance 1-Jan 5,000 X $20 = $100,000 5-Jan 5,000 X $20 = $100,000 7,000 X $21 = $147,000 7,000 X $21 = $147,000
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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I-08.03 Problem - I-08.03 Ali Naeem was recently placed in...

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