Questions from Financial Accounting

Q: GenDyn computes net income for 2012 of $1,500 and

GenDyn computes net income for 2012 of $1,500 and for 2013 of $1,800, its first two years of operations. Before issuing its financial statements for 2013, GenDyn discovers that an item requires an inc...

Q: Arnold Company’s raw material purchases during January, its first month of

Arnold Company’s raw material purchases during January, its first month of operations, were as follows: The inventory on January 31 was 3,500 pounds. Compute the cost of the invent...

Q: The following data relate to Crystal Chemical Corporation for the year ended

The following data relate to Crystal Chemical Corporation for the year ended December 31, 2013 (amounts in millions of euros): The company incurred manufacturing costs (direct material, direct labor...

Q: Warren Company uses a FIFO cost-flow assumption and calculates Cost

Warren Company uses a FIFO cost-flow assumption and calculates Cost of Goods Sold as Beginning Inventory + Purchases – Ending Inventory. It uses a physical count of merchandise on hand to determine th...

Q: Cat Incorporated manufactures machinery and engines for the construction, agriculture,

Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP and reports its results in millions of U.S. dollars ($). For the ye...

Q: Falcon Motor Company, a U.S. automotive manufacturer,

Falcon Motor Company, a U.S. automotive manufacturer, reports that it uses the LIFO cost-flow assumption for inventory. For the year ended December 31, 2013, Falcon’s cost of goods s...

Q: Cemex S.A., a Mexican cement and construction firm,

Cemex S.A., a Mexican cement and construction firm, reported ending inventory, net for the year ended December 31 of $19,631 million (all amounts reported in millions of Mexican pesos). During the yea...

Q: WollyMartin Limited, a large retailer, provided the following information from

WollyMartin Limited, a large retailer, provided the following information from its accounting records for the year ended September 30, 2013: WollyMartin’s business is characterized...

Q: Bulls Eye Stores constructed new stores during the current year. The

Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bull...

Q: Nexor, a steel manufacturer, self-constructs a new manufacturing

Nexor, a steel manufacturer, self-constructs a new manufacturing facility in Vermont. At the start of 2013, the Construction-in-Process account had a balance of $30 million. Construction activity occu...