42 a concept by which the least favourable figures

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42) A concept by which the least favourable figures are presented in the financial statementsDiff: 1Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual FrameworkSkill: KnowledgeObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methods43) A characteristic requiring the use of the same accounting methods and procedures from period to periodDiff: 1Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual FrameworkSkill: KnowledgeObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methods44) Accounting concept that states that a company must perform strictly proper accounting only for items that are significant to the business’s financial statementsDiff: 1Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual FrameworkSkill: KnowledgeObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methods
45) The accounting principle that discourages managers from manipulating income by changing from one inventory method to anotherDiff: 1Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual FrameworkSkill: ComprehensionObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methodsAnswers: 38) A 39) B 40) F 41) F 42) C 43) D 44) E 45) D46) The following data pertain to Stratus Company for the year ended December 31, 2014:Beginning inventory balance $245,500Purchases of inventory on credit during year 570,000Sales (40% on credit) during year 780,000Cost of goods sold during year 550,000Required:1.Calculate the value of ending inventory on December 31, 2014.2.Determine the gross marginAnswer:1.Beginning inventory $245,500Purchases 570,000Cost of Goods Available $ 815,500Less: Cost of Goods Sold 550,000Ending Inventory $ 265,500
2.Gross Margin = Sales – Cost of Goods Sold= $780,000 – 550,000= $230,000Diff: 2Learning Outcome: A-02 Describe the components of and prepare the four basic financial statementsSkill: ApplicationObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methods47) The following data are available for the month of April for Gore Company:April 1 inventory 120 units at $8.15 eachApril 10 purchase 200 units at $8.20 eachApril 20 purchase 410 units at $8.40 eachApril 25 purchase 310 units at $8.50 eachGore sold 630 units during April.Compute the value of ending inventory under FIFO. Assume a periodic inventory system.Answer: (310 × $8.50) + (100 × $8.40) = $2,635 + $840 = $3,475Diff: 2Learning Outcome: A-09 Explain and apply inventory costing methodsSkill: ApplicationObjective: 6-3 Account for periodic inventory under FIFO and weighted-average-cost methods48) The following data are available for the month of April for Gore Company:
April 1 inventory 120 units at $8.15 eachApril 10 purchase 200 units at $8.20 eachApril 20 purchase 410 units at $8.40 eachApril 25 purchase 310 units at $8.50 eachGore sold 630 units during April.

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