# 145izzy and coco tihanyi founded surf diva why is

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145.Izzy and Coco Tihanyi founded Surf Diva. Why is managing inventory an important issue for their company? 146.Monitor Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for their first year of operation: Monitor's ending inventory using the LIFO method was \$8,200. Monitor's accountant determined that had they used FIFO, the ending inventory would have been \$8,500. a. Determine what the income before taxes would have been, had Monitor used the FIFO method of inventory valuation instead of LIFO. b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate? 147.Evaluate each inventory error separately and determine whether it overstates or understates cost of goods sold and net income.

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148.The City Store reported the following amounts on their financial statements for 2008, 2009 and 2010: It was discovered early in 2011 that the ending inventory on December 31, 2008 was overstated by \$6,000 and the ending inventory on December 31, 2009 was understated by \$2,500. The ending inventory on December 31, 2010 was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets and equity for each of the years 2008, 2009 and 2010. 149. A company reported the following data: Required: 1. Calculate the company's merchandise inventory turnover for each year. 2. Comment on the company's efficiency in managing its inventory. 150. A company reported the following data: Required: 1. Calculate the days' sales in inventory for each year. 2. Comment on the trend in inventory management.
151. A company made the following purchases during the year: On December 31, there were 28 units in ending inventory. These 28 units consisted of 1 from the January 10 purchase, 2 from the March 15 purchase, 5 from the April 25 purchase, 15 from the July 30 purchase and 5 from the October 10 purchase. Using specific identification, calculate the cost of the ending inventory. 152.A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. If the company uses the weighted-average inventory valuation method and the perpetual inventory method, what would be the cost of its ending inventory? 153.A company made the following merchandise purchases and sales during the month of July: There was no beginning inventory. If the company uses the first-in, first-out perpetual inventory method what would be the cost of the ending inventory?

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154.A company made the following merchandise purchases and sales during the current month: There was no beginning inventory. If the company uses the last-in, first-out perpetual inventory system, what would be the cost of the ending inventory? During January, a company that uses a perpetual inventory system had beginning inventory, purchases and sales as follows: 155.What was the FIFO cost of the company's January 31 inventory?
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