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3 years ago

Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs?

1 answer:

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Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs? FIFO. The FIFO inventory method stands for first-in, first-out. This method allows businesses to keep track of their inventory on an old inventory out before the new inventory basis. The first out inventory is recorded as the first items sold even if they aren't exactly the oldest item.

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Which of these is NOT an assumption of the basic continuous review model?

VladimirAG [237]

Answer:

D. The order quantity is constant, regardless of the demand.

Explanation:

Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.

It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.

The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.

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3 years ago

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan

algol13

Answer:

Morrow Enterprises Inc.

A. January 1 balances in T-accounts:

Common Stock

Jan. 1 Balance b/d $7,500,000

Additional Paid-in Capital -Common Stock

Jan. 1 Balance b/d $825,000

Retained Earnings

Jan. 1 Balance b/d $33,600,000

Treasury Stock

Jan. 1 Balance b/d $450,000

B1. Journal entries to record the transactions:

Jan. 22

Debit Dividends Payable $28,000

Credit Cash Account $28,000

To record payment of $0.08 dividends per share.

April 10

Debit Cash Account $1,800,000

Credit Common Stock $1,500,000

Credit Additional Paid-in Capital $300,000

To record the issue of 75,000 shares for $24 per share.

June 6

Debit Cash Account $650,000

Credit Treasury Stock $450,000

Credit Additional Paid-in Capital $200,000

To record reissue of 25,000 shares of treasury stock at $26 per share and close the Treasury Stock balance to Additional Paid-in Capital.

July 5

Debit Stock Dividends $450,000

Credit Dividends Payable $450,000

To record the declaration of the 4% stock dividend on 450,000 shares of common stock.

August 15

Debit Dividends Payable $450,000

Credit Common Stock $360,000

Credit Additional Paid-in Capital $90,000

To record the issue of a 4% stock dividend certificates on 450,000 shares at $25

Nov. 23

Debit Treasury Stock $570,000

Credit Cash Account $570,000

To record the purchase of 30,000 shares of treasury stock for $19 per share.

Dec. 28

Debit Dividends $42,000

Credit Dividends Payable $42,000

To record the declaration of a $0.10 per share dividend on 420,000 shares of common stock.

Dec. 31

Debit Income Summary Account $1,125,000

Credit Retained Earnings $1,125,000

To close the credit balance of the income summary.

Dec. 31

Debit Retained Earnings $492,000

Credit Stock Dividends $450,000

Credit Dividends $42,000

To close the two dividends accounts.

B2) Posting to the selected accounts:

Common Stock

Dec. 31 Balance c/d $9,360,000 Jan. 1 Balance b/d $7,500,000

Apr. 10 Balance b/d $1,500,000

Aug 15 Dividend Payable $360,000

$9,360,000 $9,360,000

Jan. 1 Balance b/d $9,360,000

Additional Paid-in Capital -Common Stock

Dec. 31 Balance c/d $1,415,000 Jan. 1 Balance b/d $825,000

Apr. 10 Balance b/d $300,000

Jun. 6 Treasury Stock $200,000

Aug 15 Dividend Payable $90,000

$1,415,000 $1,415,000

Jan. 1 Balance b/d $1,415,000

Retained Earnings

Dec. 31 Stock Dividends $450,000 Jan. 1 Balance b/d $33,600,000

Dec. 31 Dividends $42,000 Dec. 31 Income Summary $1,125,000

Dec. 31 Balance c/d $34,233,000

$34,725,000 $34,725,000

Jan. 1 Balance b/d $34,233,000

Treasury Stock

Jan. 1 Balance b/d $450,000 Jun. 6 Cash $450,000

Nov. 23 Cash $570,000 Dec. 31 Balance c/d $570,000

$1,020,000 $1,020,000

Jan. 1 Balance b/d $570,000

Dividends Payable

Jan. 22 Cash $28,000 Jan. 1 Balance b/d $28,000

Aug. 15 Common Stock $360,000 Jul. 5 Stock Dividends $450,000

Aug. 15 Additional Paid-in$90,000 Dec. 23 Cash Dividends $42,000

Dec. 31 Balance c/d $42,000

$520,000 $520,000

Jan. 1 Balance b/d $42,000

Stock Dividends

Jul. 5 Dividends Payable $450,000 Dec. 31 Retained Earnings $450,000

Cash Dividends

Dec. 28 Dividends Payable $42,000 Dec. 31 Retained Earnings $42,000

Income Summary Account

Dec. 31 Retained Earnings $1,125,000 Dec. 31 Balance b/d $1,125,000

C. Retained Earnings Statment for the year ended December 31, 2016:

Beginning Balance $33,600,000

Income Summary $1,125,000

Stock Dividends ($450,000)

Cash Dividends ($42,000)

Ending Balance $34,233,000

Explanation:

a) Cash Account

Apr. 10 Common Stock $1,500,000 Jan. 22 Dividends Payable$28,000

April 10 Additional Paid-in $300,000 Nov. 23 Treasury Stock $570,000

Jun. 6 Treasury Stock $450,000

Jun. 6 Additional Paid-in $200,000

6 0

3 years ago

Please follow me is there any BTS fan.

Harlamova29_29 [7]

Explanation:

why do you need followers here?

5 0

3 years ago

Percent of Sales Method

Greeley [361]

Answer:

a. Amount of bad debts = Sales * (Bad debts %) = $51,850,000 * 0.25% = $129,625. Thus, the amount of the adjusting entry for uncollectible accounts is $129,625.

b. The adjusted balances are as follow

Accounts Receivable $2,150,000

Allowance for Doubtful Accounts $119,125 (129,625 - 10,500)

Bad Debt Expense $129,625

c. Net realizable value of accounts receivable = Balance of accounts receivables - Allowance for Doubtful Accounts

Net realizable value of accounts receivable = $2,150,000 - $119,125

Net realizable value of accounts receivable = $2,030,875

7 0

3 years ago

Josie, an unmarried taxpayer, has $155,000 in salary, $10,000 in income from a limited partnership, and a $26,000 passive activi

Pepsi [2]

Answer:

$10,000

Explanation:

Josie, an unmarried taxpayer, has $155,000 in salary, $10,000 in income from a limited partnership, and a $26,000 passive activity loss from a real estate rental activity in which she actively participates. If her modified adjusted gross income is $155,000, how much of the $26,000 loss is deductible

The loss of $10,000 is deducted against the passive activity income from Josie limited partnership interest.

However,none of the remaining $16,000 rental loss is deducted against Josie's salary, even though Josie actively participates in the activity. The special $25,000 offset for real estate rental activities is reduced to $0

Which will be calculated as [$25,000 – 50%($155,000 – $100,000)]. Therefore, of the remaining $16,000 loss, none can be deducted in the current year

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3 years ago