User Account

All Pages

Lower of cost or market error effect lagreca company

Assignment Help Accounting Basics
Reference no: EM131117403

1. Lower-of-Cost-or-Market-Error Effect LaGreca Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2010, included product X. Relevant per-unit data for product X appear below. There were 1,000 units of product X on hand at December 31, 2010. Product X was incorrectly valued at $38 per unit for reporting purposes. All 1,000 units were sold in 2011.Compute the effect of this error on net income for 2010 and the effect on net income for 2011, and indicate the direction of the misstatement for each year. 

265_11-B-A-V-I (117).PNG

Reference no: EM131117403

Questions Cloud

Unit cost of this product using absorption method : a) Determine the unit cost of this product using absorption method b) Determine the unit cost of this product using marginal costing
Propose at least two actions an administrator can take : From the second e-Activity on "Variance Analysis", propose at least two actions an administrator can take to avoid assumptions in budget items to avoid overlooking favorable or adverse line items in the budget.
Why do interest rates vary among countries : Why do interest rates vary among countries? Why are interest rates normally similar for those European countries that use the euro as their currency?
Airbnb and the ghost of start - ups past : MINICASE: AIRBNB AND THE GHOST OF START - UPS PAST1 As you reflect on what you have read and your knowledge of the impact of new technology on the competitive landscape, why would Amazon and eBay act so differently?
Lower of cost or market error effect lagreca company : Lower-of-Cost-or-Market-Error Effect LaGreca Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items.
Processes becoming expressed and performed in digital : 1) When we witness content and processes becoming expressed and performed in digital form, we are in the presence of:
Major sources of credit and counter-party risk : How can the retail inventory industry effectively and efficiently utilize bar coding in stock management? Describe the major sources of credit and counter-party risk. Use your text to support your answer.
Find the differential equations relating the height : Assume that (1) the actuator acts as a pure electric resistance, (2) the heat flow into the actuator is proportional to the electric power input, and (3) the motion d is proportional to the difference between Tact and Tamb, due to thermal expansio..
Compare the burden of your state with two neighboring states : Compare the burden of your state with two neighboring states. Illustrate with examples the burden of state, local, and state-local taxation in your state (My state is Georgia).

Reviews

Write a Review

Accounting Basics Questions & Answers

  In a computerized environment you learn about the

in a computerized environment you learn about the relationship between peachtree and the fundamental accounting

  Rapid response manufacturing company suffered major losses

rapid response manufacturing company suffered major losses in a fire on june 18 2009. in addition to destroying several

  A useful by-product of the legislative process is

a useful by-product of the legislative process is legislative history which is used to help interpret the new law.

  Periodic inventory system

If a company uses the periodic inventory system, what is the impact on the current ratio of including goods in transit f.o.b. shipping point in the Purchases account and not in the Inventory account?

  What should the stock sell for today

Dividends are expected to grow at a constant rate of 4% for the next two years, at which point the stock is expected to sell for $56.00. If investors require a rate of return on Modem's common stock of 18%, what should the stock sell for today?

  What was the flexible budget variance a positive number

the following information is for x companybudgeted proudction10200 unitsactual production11300 unitsbudgeted

  Prepare necessary adjusting entries at december 31 to

the following are selected 2010 transactions of franco corporation.jan. 1 purchased a small company and recorded

  Determine the number of pizzas that pizazz must sell to

pizza pizazz is a local restaurant. price and cost information follows price per pizza 13.01 variable cost per pizza

  The balance in beginning work in process at bing rubber

the balance in beginning work in process at bing rubber company for direct labor was 152300. during the month of march

  Journal entries required from the issuance of the note

Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2015, assuming that no entries are made other than at the end of the accounting period, when interest is payable, and when the note reaches its mat..

  Audit-client considerations

Read the above case. Choose one of the individuals in the case and identify their actions and viewpoints. Write up an executive summary on the case, including answers to the following questions.

  Aaa lock manufacturing co makes and sells several models of

aaa lock manufacturing co. makes and sells several models of locks. the cost records for the zforce lock show that

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd