Questions from Financial Reporting


Q: Ramps by Jake, Inc., manufactures skateboard ramps. The company

Ramps by Jake, Inc., manufactures skateboard ramps. The company uses independent sales representatives to market its products and pays a commission of 8% on each sale. Data regarding the five styles o...

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Q: 1. Refer to the facts in Problem 9-16.

1. Refer to the facts in Problem 9-16. Repeat the requirements assuming that Jake uses the FIFO cost flow assumption. 2. Explain how the financial statements are affected when a company decides that N...

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Q: The following information pertains to Yuji Corporation: /

The following information pertains to Yuji Corporation: Costs incurred during the year 2017 were as follows: Raw material purchased ………&ac...

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Q: Bravo Wholesalers, Inc., began its business on January 1,

Bravo Wholesalers, Inc., began its business on January 1, 2017. Information on its inventory purchases and sales during 2017 follows: Required: Assume a tax rate of 40%. 1. Compute the cost of endin...

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Q: Mastrolia Manufacturing produces pacifiers. The company uses absorption costing for external

Mastrolia Manufacturing produces pacifiers. The company uses absorption costing for external reporting, but management prefers variable costing for evaluating the profitability of each model. Bonuses,...

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Q: Jeanette Corporation’s president is in a dilemma regarding which inventory method (

Jeanette Corporation’s president is in a dilemma regarding which inventory method (LIFO or FIFO) to use. The controller provides the following list of factors that should be considered before making a...

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Q: Princess Retail Stores started doing business on January 1, 2017.

Princess Retail Stores started doing business on January 1, 2017. The following data reflect its inventory purchases and sales during the year: Required: 1. Compute gross margin and cost of ending i...

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Q: Packard, Inc., adopted the dollar-value LIFO inventory method

Packard, Inc., adopted the dollar-value LIFO inventory method on June 30, 2016, the end of its fiscal year. Packard’s inventory records provide the following information: Calculate...

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Q: In 2018, Ginzel Corporation agreed to provide a client with 20

In 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its client’s key products for a total fee of $110,000. The fee was computed as $5,000 per report x 20 repo...

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Q: During your audit of Patti Company’s ending inventory at December 31,

During your audit of Patti Company’s ending inventory at December 31, 2017, you find the following inventory accounting errors: a. Goods in Patti’s warehouse on consignment from Valley, Inc., were inc...

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