Questions from Intermediate Accounting

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 following: a. the LCNRV for each item, and b. the amount of write-down, if any, using 1. an item-by-item LCN...

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

Kumar Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $214,000,000 at both cost and net realizable value. At December 31, 2017, the inventory was $286,000,000 at cost and $26...

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

Presented below is information related to Rembrandt Inc.’s inventory, assuming Rembrandt uses lower-of-LIFO cost-or-market. Determine the following: a. the two limits to market va...

Q: Kumar Inc. uses LIFO inventory costing. At January 1,

Kumar Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,000 at both cost and market value. At December 31, 2017, the inventory was $286,000 at cost and $265,000 at market value....

Q: Fernandez Corporation purchased a truck at the beginning of 2017 for $

Fernandez Corporation purchased a truck at the beginning of 2017 for $50,000. The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in...

Q: Ogala Corporation purchased a significant amount of raw materials inventory for a

Ogala Corporation purchased a significant amount of raw materials inventory for a new product that it is manufacturing. Ogala uses the LCNRV rule for these raw materials. The net realizable value of t...

Q: Kemper Company signed a long-term noncancelable purchase commitment with a

Kemper Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2018 at a cost of $1,000,000. At December 31, 2017, the raw materials to be purch...

Q: Use the information for Kemper Company from BE9-7. In

Use the information for Kemper Company from BE9-7. In 2018, Kemper paid $1,000,000 to obtain the raw materials which were worth $950,000. Prepare the entry to record the purchase. From BE9-7: Kemper...

Q: Lockard Company purchased machinery on January 1, 2017, for $

Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. a. Compute 2017 depreciation expense...

Q: In its 2014 annual report, Campbell Soup Company reports beginning-

In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net in...