Questions from Intermediate Accounting

Q: Of what significance is inventory turnover to a retail store?

Of what significance is inventory turnover to a retail store?

Q: Explain the rationale for the ceiling and floor in the lower of

Explain the rationale for the ceiling and floor in the lower of cost or market method of valuing inventories.

Q: Presented below is information related to Rembrandt Inc.’s inventory.

Presented below is information related to Rembrandt Inc.’s inventory. Determine the following:(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the l...

Q: Floyd Corporation has the following four items in its ending inventory.

Floyd Corporation has the following four items in its ending inventory. Determine the final lower-of-cost-or-market inventory value for each item.

Q: Kumar Inc. uses a perpetual inventory system. At January 1

Kumar Inc. uses a perpetual inventory system. At January 1, 2014, inventory was $214,000 at both cost and market value. At December 31, 2014, the inventory was $286,000 at cost and $265,000 at market...

Q: Bell, Inc. buys 1,000 computer game CDs from

Bell, Inc. buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000. Bell will group the CDs into three price categories for resale, a...

Q: Kemper Company signed a long-term non-cancelable purchase commitment

Kemper Company signed a long-term non-cancelable purchase commitment with a major supplier to purchase raw materials in 2015 at a cost of $1,000,000. At December 31, 2014, the raw materials to be purc...

Q: Use the information for Kemper Company from BE9-5. In

Use the information for Kemper Company from BE9-5. In 2015, Kemper paid $1,000,000 to obtain the raw materials which were worth $950,000. Prepare the entry to record the purchase. In BE9-5 Kemper Comp...

Q: Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1

Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $150,000, and purchases for January through April totaled $500,000. Sales revenue for the same period were...

Q: Boyne Inc. had beginning inventory of $12,000 at

Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000; net markdowns were $7,000; and sales...