Reference no: EM132978986
Question - Comfort Solutions sells a wide range of mattresses to consumers. For the most recent year, Comfort Solutions provides you with the following data:
Beginning inventory = $2,450,000
Purchases = $23,125,000
Ending inventory = $2,225,000
Transportation in = $511,500
Comfort Solutions informs you that it has traditionally treated transportation in as a period expense. However, the firm has a new auditor this year. The auditor believes that the cost of "transportation in" should be treated as a product cost and, as such, should flow through the firm's inventory account.
Required -
a. What is Comfort's cost of goods sold under its current (traditional) system?
b. Assume the auditor asks Comfort to allocate the cost of transportation in between cost of goods sold (as computed in part (a)) and ending inventory. Using this approach, what is Comfort's cost of goods sold?
c. Which approach, (a) or (b), do you believe is most appropriate for Comfort Solutions?
|
Record the transactions under a fund accounting
: Trust fund of P5,000,000 which Enity A shall never use; only the income therefrom. Record the transactions under a fund Accounting
|
|
Comment on the changes in productivity
: Comment on the changes in productivity according to the two measures (What % did the labor and multifactor productivity increase by
|
|
How many units were sold during the year
: ABC Company manufactures and sells in excess of 200,000 solid carbide point tip pens a year. How many units were sold during the year
|
|
What is the process of retirement planning
: What is the process of retirement planning? Discuss the sources of income in retirement and the how to manage the gap in income during the same time
|
|
What is Comfort cost of goods sold
: Comfort Solutions informs you that it has traditionally treated transportation in as a period expense. What is Comfort cost of goods sold
|
|
What is meant by weighted average cost of capital
: xplain to the managing director what is meant by "weighted average cost of capital" and how it is computed
|
|
What is the implied goodwill from the acquisition
: During 2020, Kiskita Company reported net income of P6,000,000 and paid cash dividend of P1,500,000. What is the implied goodwill from the acquisition
|
|
How much is considered legal capital of DD
: DD Company issues 6,000 shares of its P5 par value ordinary shares having a market value of P25 per share. How much is considered legal capital of DD
|
|
What is the maximum price you would be willing to pay
: The replacement value of the restaurant's plant and equipment is $206,000. What is the maximum price you would be willing to pay
|