1. Details of OCC Corp inventory balance and Cost of Good Sold are given below: $ Million 2022 2021 Inventory Balance 2032 1940 Cost of Goods Sold 22344 21998 OCC uses LIFO for valuation of approximately 60% of its inventory, and FIFO for the rest. LIFO reserve for 2022 and 2021 are respectively $ 205 and $212. What would be inventory values respectively for 2022 and 2021 if FIFO was being used for inventory valuation? a. $ 2237 and $ 2152 b. $ 1424 and $ 1376 c. $ 1827 and $1728 d. $ 2155 and $ 2067 e. None of the above

1. Details of OCC Corp inventory balance and Cost of Good Sold are given below: $ Million 2022 2021 Inventory Balance 2032 1940 Cost of Goods Sold 22344 21998 OCC uses LIFO for valuation of approximately 60% of its inventory, and FIFO for the rest. LIFO reserve for 2022 and 2021 are respectively $ 205 and $212. What would be inventory values respectively for 2022 and 2021 if FIFO was being used for inventory valuation? a. $ 2237 and $ 2152 b. $ 1424 and $ 1376 c. $ 1827 and $1728 d. $ 2155 and $ 2067 e. None of the above

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Description: 1. Details of OCC Corp inventory balance and Cost of Good Sold are given below: $ Million2022 2021 Inventory Balance 2032 1940 Cost of Goods Sold 22344 21998 OCC uses LIFO forvaluation of approximately 60% of its inventory, and FIFO for the rest. LI

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
3. ABC Company provided the following data for 2021: Inventory - December 31, 2020: P3,000,000 2,800,000 7,500,000 Cost Net realizable value Cost of goods purchased Inventory - December 31, 2021: Cost 4,000,000 3,700,000 Net realizable value Any inventory write-downs are considered by ABC Company as immaterial. What amount should be reported as cost of goods sold?
The dollar-value LIFO method was adopted by Splish Corp. on January 1, 2025. Its inventory on that date was $413,600. On December 31, 2025, the inventory at prices existing on that date amounted to $392,000. The price level at January 1, 2025, was 100, and the price level at December 31, 2025, was 112. (a) Your answer is correct. Compute the amount of the inventory at December 31, 2025, under the dollar-value LIFO method. Inventory 12/31/25 under dollar-value LIFO method eTextbook and Media +A 350,000 Attempts: 1 of 4 used
Nash Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $247 $227 $196 $185 $227 $185 Cost 155 165 165 165 103 74 Replacement cost 247 148 144 62 144 62 Estimated selling expense 62 62 62 52 62 62 Normal profit 41 41 41 42 41 41 41 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. Item D $ Item E $ Item F $ Item G $ Item H $ ItemI $ +A
6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Unit Cost When Acquired Item A B C D Quantity on Hand 80 35 40 75 €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 each in cash and written-off 5 units of D. Make necessary journal entries.
Sandhill Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2024. Its inventory at that date was $1105000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date December 31, 2025 December 31, 2026 December 31, 2027 Inventory at Current Prices $1276000 1448000 1629000 Current Price Index 105 123 128 What is the cost of the ending inventory at December 31, 2026 under dollar-value LIFO? (Round intermediate calculations to 0 decimal places, eg 1,555.)
2) Gander Inc. uses the Dollar Value (DV) LIFO inventory costing method. At December 31, 2023, Gander had the following information: 2023 2023 layer 2022 layer Base (2021) a) b) c) d) 4,000 8,000 X 20,000 X Dollar Value LIFO Ending Inventory $33,760 X 1.20 A 1.00 $ 4,800 8,960 20,000 What is the value of A? What is the total inventory at base cost at December 31st, 2023? On December 31, 2024, Gander had total inventory at base cost of $26,000. The DV LIFO Index for 2024 was 1.18. What is the dollar value (DV) LIFO inventory value at December 31, 2024? On December 31, 2025, Gander had total inventory at base cost of $30,000. This inventory had a current cost of $36,600. What is the dollar value (DV) LIFO inventory value at December 31, 2025?
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6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information about inventory stocked for regular sale follows: Item A B C D Quantity on Hand 80 35 40 75 Unit Cost When Acquired €50 €20 €50 €40 Market Value at year end €30 €25 €80 €20 a) Compute the valuation for the December 31, 2022, inventory using the lower-of-cost-or-net realizable value basis and make necessary adjusting journal entries. b) Sold 15 units of A for €20 in cash, 3 units of B for €30 and 10 units of C for €75 cach in cash and written-off 5 units of D. Make necessary journal entries. 7. Improvements were made to the leased warehouse on June 01, 2021 at a cost of $ 22,000. The estimated life of the improvement is ten years. Lease contract terminates on December 31, 2025. Make necessary entries as of 31.12.2021 and 31.12.2022.
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2019, consists of products D, E, F, G, and H. Relevant per-unit data for these products appear below. Item D E F G H Estimated selling price €125 € 115 € 85 € 95 € 100 Cost 77 82 70 50 55 Cost to complete 30 30 25 35 30 Selling costs 10 18 10 20 10 Instructions: Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2019, for each of the inventory items above.
2. Date The following information relates to the Windsor Company. Ending Inventory Price (End-of-Year Prices) Index December 31, 2023 $ 60,500 100 December 31, 2024 78,000 103 December 31, 2025 90,400 106 December 31, 2026 99,750 108 December 31, 2027 115,680 111 Use the dollar-value LIFO method to compute the ending inventory for Windsor Company for 2023 through 2027.
Kingbird Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E $ Item D $293 183 293 73 $ 49 183 Item E $268 195 176 73 49 176 Item F $232 195 171 73 49 Item G $220 195 73 61 49 Item H $268 122 171 73 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. 49 Item I $220 88 73 73 49