Questions from Financial Reporting

Q: Acute Company manufactures a single product. On December 31, 2014

Acute Company manufactures a single product. On December 31, 2014, it adopted the dollar- value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was deter...

Q: On December 31, 2016, Fern Company adopted the dollar-

On December 31, 2016, Fern Company adopted the dollar-value LIFO inventory method. All of Fern’s inventories constitute a single pool. The inventory on December 31, 2016, using the dollar-value LIFO i...

Q: Cost for inventory purposes should be determined by the inventory cost flow

Cost for inventory purposes should be determined by the inventory cost flow method most clearly reflecting periodic income. 1. Describe the fundamental cost flow assumptions for the average cost, FIFO...

Q: Sperry-New Holland manufactures farm machinery. During 2017, it

Sperry-New Holland manufactures farm machinery. During 2017, it incurred a variety of costs, several of which appear on the following list. Nature of Incurred Cost a. Comprehensive liability insurance...

Q: Jessica’s Office Supply, Inc., had 300 calculators on hand at

Jessica’s Office Supply, Inc., had 300 calculators on hand at January 1, 2017, costing $16 each. Purchases and sales of calculators during the month of January were as follows: Jes...

Q: The following information is available for Day Company for 2017:

The following information is available for Day Company for 2017: Cash disbursements for purchase of merchandise ……………$290,000 Increase in trade accounts payable ………………………………………25,000 Decrease in merc...

Q: For the year 2017, Dumas Company’s gross profit was $96

For the year 2017, Dumas Company’s gross profit was $96,000; the cost of goods manufactured was $340,000; the beginning inventories of goods in process and finished goods were $28,000 and $45,000, res...

Q: Hestor Company’s records indicate the following information: Merchandise inventory

Hestor Company’s records indicate the following information: Merchandise inventory, January 1, 2017 …………………………$ 550,000 Purchases, January 1 through December 31, 2017 …………………………2,250,000 Sales, Janua...

Q: Following is selected information from the balance sheet for Flaps Inc.

Following is selected information from the balance sheet for Flaps Inc. Solve for the missing amounts for each of the five years.

Q: On June 30, 2017, a tornado damaged Jensen Corporation’s warehouse

On June 30, 2017, a tornado damaged Jensen Corporation’s warehouse and factory, completely destroying the work-in-process inventory. Neither the raw materials nor finished goods inventories were damag...