The Garrard Company manufactures trendy, high-quality, moderately priced watches. As Garrand's senior financial analyst, you are asked to recommend a method of inventory costing. The chiefl francial officer (CFO) w use your recomm tation to prepare Gamand's 2020 income statement. The following data are for the year ended December 31, 2020 (Click the icon to view the data) ( (Click the ssumptions) Read the mos Requirement 1. Prepare income statements under vanable and absorption costing for Begin by preparing the income statement under variable costing for the year ended De Variable costing Data table Beginning inventory, January 1, 2020 Ending Inventory, December 31, 2020 2020 al Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per un sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating marketing) costs Print Done 84.000 unts 33.000 units 269.000 units $20.00 per unit $5.20 perunt $1.80 per un sold $063200 5,600 40 units per machine four $1,050.000

The Garrard Company manufactures trendy, high-quality, moderately priced watches. As Garrand's senior financial analyst, you are asked to recommend a method of inventory costing. The chiefl francial officer (CFO) w use your recomm tation to prepare Gamand's 2020 income statement. The following data are for the year ended December 31, 2020 (Click the icon to view the data) ( (Click the ssumptions) Read the mos Requirement 1. Prepare income statements under vanable and absorption costing for Begin by preparing the income statement under variable costing for the year ended De Variable costing Data table Beginning inventory, January 1, 2020 Ending Inventory, December 31, 2020 2020 al Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per un sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating marketing) costs Print Done 84.000 unts 33.000 units 269.000 units $20.00 per unit $5.20 perunt $1.80 per un sold $063200 5,600 40 units per machine four $1,050.000

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter16: Manufacturing Accounting (mfg)

Section: Chapter Questions

Problem 3R: The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to...

See similar textbooks

Similar questions

The accountant for the Lintz Sales Company is preparing the multiple-step income statement for 2020. The January 1, 2020 merchandise inventory balance will appear as a deduction of the Sales or Revenue section of the income statement. O in the Cost of Goods sold section of the income statement. O as an addition of the Sales or Revenue section of the income statement. O in the Selling Expenses section of the income statement.
You are assigned to prepare the financial statements of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost 739,160 Goods Available for Sale at retail 3,930,000 Sales Discount 16,000 48,500 Net markdowns Net markups 30,000 Beginning inventory at retail 1,450,000 2,422,000 Purchases at retail The company adopts the average cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.
From the following hypothetical data for Riffa Co. in 2018 and 2019 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Riffa's Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2019. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Cost of Goods Sold Gross Profit Ending Inventory Riffa Co. Required: Calculate the followings for Riffa Co. (consider 3 decimal places) 1. Sales Revenue and Growth Rate for Y+ 1 year. 2. Inventory Turnover for 2019. 3. Forecasted Gross Profit for Y+1. 4. Projected Average Inventory Balance in Year +1 5. Projected Ending Inventory for Year + 1. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) 2018 48520 30560 6480 2019 56520 36800 8260
From the following hypothetical data for Riffa Co. in 2018 and 2019 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Riffa's Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2019. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Cost of Goods Sold Gross Profit Ending Inventory Riffa Co. Required: Calculate the followings for Riffa Co. (consider 3 decimal places) 1. Sales Revenue and Growth Rate for Y+ 1 year. 2. Inventory Turnover for 2019. 3. Forecasted Gross Profit for Y+1. 4. Projected Average Inventory Balance in Year +1 5. Projected Ending Inventory for Year + 1. 2018 48520 30560 6480 2019 56520 36800 8260
The table below is a summary of inventory for YZ company. Do a descriptive analysis on products in inventory with regards to minimum, maximum and average book value. Advise manager of YZ of the level of inventory at December 31, 2019.
You have been hired by Johnson and Johnson Corp. this year. Your supervisor approaches you and need you recommendation on the inventory valuation assumption you will recommend for the company to use instead to using Specific Identification method. Instruction: Identify each of the cost flow assumptions that company can use. Explain the advantages and disadvantages of using each of them. Each one will you recommend and Why? What are the characteristics of a Just-in-time inventory system? Explain some advantages and risks of Just-in-time inventory system.
The management of Tudor Living asks for your help in determining the comparative effects of the FIFO and average-cost inventory cost flow methods. For 2020, the accounting records provide the data shown below. Units purchased consisted of 40,000 units at £4.00 on May 10; 60,000 units at £4.20 on August 15; and 20,000 units at £4.45 on November 20. Income taxes are 28%. Instructions a.Prepare comparative condensed income statements for 2020 under FIFO and average cost. (Show computations of ending inventory.) b.Answer the following questions for management: 1.Which inventory cost flow method produces the more meaningful inventory amount for the statement of financial position? Why? 2.Which inventory cost flow method is more likely to approximate the actual physical flow of the goods? Why? 3.How much more cash will be available for management under average-cost thanunder FIFO? Why?
Katelyn is the Purchasing Manager at Polo Industries, Inc. She asked you to help her determine what the Ending Balance for Inventory and the Cost of Goods Sold total would be using the three (3) valuation methods: (a) LIFO (last in first out), (b) FIFO (first in first out), and Weighted Average. The purchase information is below: Inventory Purchase Saturday, June 6, 2020 Sunday, June 14, 2020 Thursday, June 18, 2020 Tuesday, June 30, 2020 Items Cost per Item 107 24 85.10 158 79.50 87 $4 95.00 93 92.40 445 Katelyn told you that 300 items were sold and 145 remained in inventory. (b) Calculate the valuations using FIFO (2 answers required). Round to the nearest 2 decimal places. HTML Editor BIU A▼囚,工 E 三三写 xx 三田, 回 >深1 云 eM VE T 12pt Paragraph AL 6
Katelyn is the Purchasing Manager at Polo Industries, Inc. She asked you to help her determine what the Ending Balance for Inventory and the Cost of Goods Sold total would be using the three (3) valuation methods: (a) LIFO (last in first out), (b) FIFO (first in first out), and Weighted Average. The purchase information is below: Inventory Purchase Saturday, June 6, 2020 Sunday, June 14, 2020 Thursday, June 18, 2020 Tuesday, June 30, 2020 Items Cost per Item 85.10 107 24 87 158 79.50 %24 95.00 93 2. 92.40 445 Katelyn told you that 300 items were sold and 145 remained in inventory. (a) Calculate the valuations using LIFO (2 answers required). Round to the nearest 2 decimal places. HTML Editor B IUA - A I E E 3 E E X x, E E 田。 Vx A v / 回 M 12pt Paragraph
You have been hired as a financial analyst of a firm and your team is working on an independent assessment of XYZ Inc. Your assistant has provided you with the following data for XYZ Inc. and their industry. R r e d : Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25 Required: a) In annual report of firm CEO wrote, we had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivable and short-term marketable securities). Is the CEO correct? b) what can you say about the firm's collection period and inventory turnover?
Katelyn is the Purchasing Manager at Polo Industries, Inc. She asked you to help her determine what the Ending Balance for Inventory and the Cost of Goods Sold total would be using the three (3) valuation methods: (a) LIFO (last in first out), (b) FIFO (first in first out), and Weighted Average. The purchase information is below: O-Matic Inventory Purchase Saturday, June 6, 2020 Sunday, June 14, 2020 Thursday, June 18, 2020 Tuesday, June 30, 2020 Items Cost per Item 107 85.10 158 79.50 87 %24 95.00 24 93 445 92.40 Katelyn told you that 300 items were sold and 145 remained in inventory. (c) Calculate the valuations using Weighted Average (2 answers required). Round to the nearest 2 decimal places. HTML Editor B IUA-囚、1三三=E x I 12pt Paragraph
State which of the following inventory methods would best attain the goals of management. Indicate your answer by writing the proper letter in the blank beside each specific goal. FIFO LIFO Weighted-average Specific identification Management wants to report approximate current inventory replacement costs on its year-end balance sheet during a period of rising prices. Management wants to maximize net income during a period of rising prices. The company sells yachts, deep-sea fishing boats, and off-shore speed boats. Management wants to maximize net income during a period of falling prices. Management wants to minimize net income during a period of falling prices. Management wants to match current cost of goods sold with