Question

In: Accounting

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its...

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products: Surgical Equipment Surgical Supplies Number of units in inventory 530 620 Per unit: Selling price 425 250 Cost 335 247 Replacement cost 345 243 Cost to sell 42 44 Normal gross profit ratio 40% 45% Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

Surgical Equipment Surgical Supplies
Number of units in inventory 530 620
Per unit:
Selling price 425 250
Cost 335 247
Replacement cost 345 243
Cost to sell 42 44
Normal gross profit ratio 40% 45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

Surgical Equipment Surgical Supplies
Number of units in inventory 530 620
Per unit:
Selling price 425 250
Cost 335 247
Replacement cost 345 243
Cost to sell 42 44
Normal gross profit ratio 40% 45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Multiple Choice

  • reduce equity by $25,420

  • increase liabilities by $64,660

  • reduce equity by $95,170

  • reduce assets by $95,170

Solutions

Expert Solution

............................................xxxx................................................

PLEASE ------PLEASE KINDLY UP VOTE IT HELPS ME THANK YOU IN ADVANCE

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

If a company chooses to implement LIFO for its cost-flow assumption in its accounting system, does...
If a company chooses to implement LIFO for its cost-flow assumption in its accounting system, does this necessarily mean that the flow of the actual product out of the warehouse is being done in a "LIFO-like manner"??
The LIFO inventory cost flow assumption is not permitted under international financial reporting standards. The primary...
The LIFO inventory cost flow assumption is not permitted under international financial reporting standards. The primary reason for the disallowance of LIFO appears to be that international standards have a strong balance sheet measurement focus and efforts have been made to eliminate accounting methods that do not support this approach. During inflationary times LIFO assigns to inventory the costs of the oldest items acquired by the company, thus causing balance sheet values to become outdated as the company grows. Approximately...
1. What other countries, if any, allow LIFO as a cost flow assumption? 2. What is...
1. What other countries, if any, allow LIFO as a cost flow assumption? 2. What is the cash conversion cycle? Provide the formula and a definition.
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The...
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, RM190,000 of materials costs and RM133,000 in conversion costs were charged to the department. The beginning work in process inventory was RM108,000 on July 1, comprised of RM80,000 of materials costs and RM28,000 of conversion costs. Other data for the month of July are as...
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The...
The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $137,100 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs. Other data for the month of July are as...
Novelli's Nursery has developed the following data for lower of cost or market for its products....
Novelli's Nursery has developed the following data for lower of cost or market for its products. The individual types of trees are separated as to their categories: Selling Cost to Price Cost Replace Broad leaf trees: Ash $1,800 $1,000 $800 Beech 2,200 1,600 1,400 Needle leaf trees: Cedar $2,500 $1,750 $1,800 Fir 3,600 3,350 3,200 Fruit trees: Apple $1,800 $1,400 $1,300 Cherry 2,300 1,800 1,700 The costs to sell are 10% of the selling price, and the normal profit margin...
Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in...
Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of $175,000, $145,000 of which were materials costs. During March, the following occurred: Materials added $305,000 Conversion costs incurred $120,000 Units...
Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in...
Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of $175,000, $145,000 of which were materials costs. During March, the following occurred: Materials added $305,000 Conversion costs incurred $120,000 Units...
Assembly Department uses a process cost accounting systm and a weighted-average cost flow assumption. The department...
Assembly Department uses a process cost accounting systm and a weighted-average cost flow assumption. The department adds minerals at the beginning of the process and incur conversion costs uniformly throughout the process. During July, $190,000 of materials cost and $135,000 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs. Other Data for the month of July are as follows:...
Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department...
Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $135,500 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs. Other data for the month of July are as follows:...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT