Which of the following statements is correct

  • CUHK
  • ACCT 224
  • Notes
  • leihiochun
  • 47
  • 95% (93) 88 out of 93 people found this document helpful

This preview shows page 15 - 17 out of 47 pages.

74.Which of the following statements is correct regarding International Financing ReportingStandards (IFRS) and U.S. GAAP with regard to inventory?a.LIFO (last-in, first-out) is permitted under IFRS but not under U.S. GAAP..b.When applying lower-of-cost-or-market, U.S. GAPP defines market as net realizablevalue.c.IFRS permits valuing inventories at fair value, similar to the accounting for property,plant, and equipment.d.Under U.S. GAPP, if inventory is written down under lower-of-cost-or-market, it maynot be written back up its original cost in a subsequent period.9 - 15
Multiple Choice Answers—ConceptualItemAns.ItemAns.ItemAns.ItemAns.ItemAns.ItemAns.ItemAns.31.a38.b45.a52.c59.a66.b73.A32.c39.d46.b53.a60.d67.d74.D33.d40.c47.d54.d61.b68.a34.a41.b48.a55.d62.a69.b35.c42.b49.a56.b63.a70.b36.a43.a50.b57.d64.d71.a37.d44.c51.d58.c65.a72.cSolutions to those Multiple Choice questions for which the answer is “none of these.”55.The gross profit percentage applicable to the goods in ending inventory is different fromthe percentage applicable to the goods sold during the period.60.Many answers are possible.
Test Bank for Intermediate Accounting: IFRS EditionMULTIPLE CHOICE—Computational75.Oslo Corporation has two products in its ending inventory, each accounted for at the lowerof cost or market. Specific data with respect to each product follows:Product #1Product #2Selling price$60$130Historical cost4070Cost to sell1026Cost to complete1540In pricing its ending inventory using the lower-of-cost-or-net realizable value, what unitvalues should Oslo use for products #1 and #2, respectively?
76.Muckenthaler Company sells product 2005WSC for $25 per unit. The cost of one unit of2005WSC is $18. The estimated cost to complete a unit is $4, and the estimated cost tosell is $6. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-net realizable value?
77.Lexington Company sells product 1976NLC for $45 per unit. The cost of one unit of1976NLC is $36. The estimated cost to complete a unit is $8, and the estimated cost tosell is $5. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-net realizable value?
78.Given the acquisition cost of product Z is $32, the cost to complete product Z is $9.00, thecost to sell product Z is $5, and the selling price for product Z is $50.00, what is the properper unit inventory price for product Z?a.$32.b.$45.c.$36.d.$41.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 47 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
Peter
Tags
Accounting, retail inventory, realizable value

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture