e debited to Ans a b Inventory records are not kept for every item Cost of poods
ID: 2397924 • Letter: E
Question
e debited to Ans a b Inventory records are not kept for every item Cost of poods sold is recorded with each sale less the cluage in Ans aSelling costs b Interest costs e Raw materials LIFO Which of the tollowing statements is not rue as t relates to the dollan vai inventory method? Abnormal spoilage ile ona sming doilun valie Li with specific goods pooled Lil O. b. Under the dollar-value LIFO method, it is possible to have the entire ivensory in only one pool. c. Several pools are commonly employed in using the dollar-value LIFO inventory method d. Under dollar-value LIFO, increases and decreases in a pool are determinesd and measured in terms of total dollar value, not physical quantity 47. Lawson Manufacturing Company has the following account balances at year end Office supplies Raw materials Work-in-process Finished goods Prepaid insurance $ 4,000 27,000 9,000 109,000 6,000 What amount should Lawson report as inventories in its balance sheet? Ans. a. $109,000 b. $113,000 S195,000 d. $199,000 48. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on consignment. What amount should Bell report as inventory at the end of the Ans. a. $780,000 b. $860,000. c. $870,000. d$930,000Explanation / Answer
44. Option C. cost of goods sold is recorded with each sale
45. Option C. Raw Materials
46. Option A. It is easier to erode LIFO layers using dollar-value LIFO techniques than it is with specific goods pooled LIFO.
47. Option C.
Cost of Inventory in Balance Sheet = Raw Materials + WIP + Finished Goods
Cost of Inventory in Balance Sheet = $27000 + $59000 + $109000
Cost of Inventory in Balance Sheet = $195000
48. Option D
Cost of Inventory in Balance Sheet = Goods On Hand + Goods in tansit + goods on Consignment
Cost of Inventory in Balance Sheet = $780000 + $60000 + $90000
Cost of Inventory in Balance Sheet = $930000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.