Reference no: EM132882840
Problem - AICPA Adapted LIFO and Inventory Pools - On January 1, 2016, Grover Company changed its inventory cost flow method to the LIFO cost method from the FIFO cost method for its raw materials inventory. It made the change for both financial statement and income tax reporting purposes. Grover uses the multiple-pools approach under which it groups substantially identical raw materials into LIFO inventory pools. It uses weighted average costs in valuing annual incremental layers. The composition of the December 31, 2018, inventory for the Class F inventory pool is as follows:
|
Units
|
Weighted Average Unit Cost
|
Total Cost
|
Base-year inventory-2016
|
9,000
|
$10.00
|
$ 90,000
|
Incremental layer-2017
|
3,000
|
11.00
|
33,000
|
Incremental layer-2018
|
2,000
|
12.50
|
25,000
|
Inventory, December 31, 2018
|
14,000
|
|
$148,000
|
Inventory transactions for the Class F inventory pool during 2019 were as follows:
On March 2, 2019, 4,800 units were purchased at a unit cost of $13.50 for $64,800.
On September 1, 2019, 7,200 units were purchased at a unit cost of $14.00 for $100,800.
A total of 15,000 units were used for production during 2019.
The following transactions for the Class F inventory pool took place during 2020:
On January 11, 2020, 7,500 units were purchased at a unit cost of $14.50 for $108,750.
On May 14, 2020, 5,500 units were purchased at a unit cost of $15.50 for $85,250.
On December 29, 2020, 7,000 units were purchased at a unit cost of $16.00 for $112,000.
A total of 16,000 units were used for production during 2020.
Required -
1. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2019. Show supporting computations in good form.
2. Prepare a schedule to compute the cost of Class F raw materials used in production for the year ended December 31, 2019.
3. Prepare a schedule to compute the inventory (units and dollar amounts) of the Class F inventory pool at December 31, 2020. Show supporting computations in good form.
Modelling the motion of a projectile using simulink
: Modelling the motion of a projectile using Simulink - Make a model of the motor that outputs values for i, E, T, L, and ? using the "To Workspace" blocks
|
Prepare the appropriate disclosures
: Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting
|
Analyze the process used to tie job descriptions
: Building on the knowledge you have gained in this course, you will be reviewing the compensation and benefit package offered by your organization.
|
About constant dividend model for valuation of company stock
: In chapter 9 of the textbook you learned about constant dividend model for valuation of a company's stock.
|
Prepare a schedule to compute the cost of Class F
: Prepare a schedule to compute the cost of Class F raw materials used in production for the year ended December 31, 2019
|
Organization implements principles of servant leadership
: A summary of how the organization implements the principles of servant leadership in providing customer service, hiring and managing employees,
|
What activities are involved in the staffing function of hrm
: What activities are involved in the staffing function of HRM
|
Institutional environment-interorganizational relationships
: Coercive forces, institutional environment, interorganizational relationships, joint venture, legitimacy, niche, organizational ecosystem, retention,
|
Difference between dysfunctional and functional conflict
: What is the difference between dysfunctional and functional conflict at work? How can you make the conflict more functional at work with mediation, negotiation,
|