Carl Boger’s Dilemma Carl Boger recently interviewed for a staff auditing position with one of the accounting firms in Phoenix, where he plans to move after graduation from UNM. The firm agreed to cover the travel expenses, including airfare and hotels, from UNM to the firm’s office. Carl, who prefers to fly American Airlines and has the credit card wh ich allows for free checked bags, booked his round- trip ticket for the interview for a total fare of $300. The firm assu red Carl it would reimburse him for the airfare expense ra ther than the firm payi ng American directly. At the end of the interview, Carl presents th e airfare receipt, along w ith other receipts for hotels, to Janet, the audit firm’s controller. Janet provides a summar y of all of Carl’s expenses as Carl departs the audit offices after the interviews are completed. Janet informs Carl that a check will be mailed in 5-7 days. Carl leaves Phoenix and flies back to Albuquerque. On the flight back to Albuquerque, Carl review s the summary of expenses and notes that the firm has included $50 for “Airline Baggage Fees”; however, Carl did not pay any such fees as he has the credit card that waives all baggage fees. On the following Monday, Carl calls Janet to tell her of the oversight on the bill. Ja net explains that the firm has al ready processed the check with the $50 baggage fee reimbursement included and to “not worry about it because it’s already paid and not that large of an amount.” Ja net continues to explain that she is busy and that small amounts such as baggage fees are not scrutinized by the firm when processing expense reimbursements. She abruptly ends the call with Carl. Being a bright , aspiring business professional, Carl carefully considers his options and the potenti al ramifications of his decision.  

REQUIREMENTS (be sure to incorporate into your responses when following the rubric): 1. What courses of action are available to Carl Boger? Identify at leas t three possible actions. 2. Discuss why each course of action may be ethical or non-ethical. 3. Which course of action should Carl choose ? Why?

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:

Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.

2.

Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.

Unit 4 - Fernando's Fraud Triangle 48 48 unread replies. 48 48 replies. Fernando’s Fraud Triangle is a retail establishment that has been experiencing lower revenues in the last six months, even though sales are up to 21.1 %. Fernando’s sells whatever products you want to sell and takes cash, credit cards, and checks. All three categories-cash/checks/credit cards-have remained consistent with no significant increase-while sales are up. There are three employees and all have access to the register and can override refunds and any other items that need to be charged back. I have narrowed it down to three employees for you. You have been called in as the Fraud Examiner to see who has their fingers in the till. Mitch: 47 Years old; 14.2 years with the company/full time employee Recently divorced/ pays child support for two kids Wages are garnished by the courts for payment Drives a three year old Jag-u-Ar Just bought a new home Makes $88,282 a year Loves to dress in style Loves the night life Crystal: 31 Years old; 10.8 years with the company/full time employee Married/mother of two children Husband has a full time job Makes $72,262 a year Drives a four year old Volvo Recently bought a new home Loves to dress in style Loves the night life John: 21 years old; 5.3 years with the company/part time employee College student/accounting Just bought a four year old Hyundai Santa Fe Lives with his parents Pays for school Makes $38,282 a year, part time Single Loves to party and dress nice

Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 25 percent of the selling price.

Required:
1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.)

2b. Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Forester Company.

Note: Enter debits before credits.

Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2018, the records indicate the following data:

Required:
Assuming the price level increased from 1 at January 1 to 1.50 at December 31, 2018, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.)

closing entries are prepared for which of the following reasons...???
a) To get the journal ready for the next accounting period
b) To get financial statements ready for next accounting period
3) To get the worksheet ready for the next accounting pey
4) To get the accounts ready for the next accounting period

In January, Arco Company purchased the rights to a natural resource for $3,000,000. The estimated recoverable units from the natural resource amount to 3,000,000 units. During the year, Arco sold 100,000 units of the natural resource at $6 per unit and incurred operating costs other than depletion of $4.50 per unit. Assume a 15 percent specified depletion percentage. Based on these facts, compute the company's depletion deduction using both cost depletion and percentage depletion and choosing the higher figure.

How can the culture of an organization contribute to overall employee satisfaction? What elements contribute to the overall culture of an organization?

Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: Beginning Inventory Ending Inventory Raw materials inventory $ 138,000 $ 277,000 Work in process inventory—Weaving 335,000 350,000 Work in process inventory—Sewing 630,000 800,000 Finished goods inventory 1,306,000 1,316,000 The following additional information describes the company’s manufacturing activities for June: Raw materials purchases (on credit) $ 700,000 Factory wages cost (paid in cash) 3,440,000 Other factory overhead cost (Other Accounts credited) 162,000 Materials used Direct—Weaving $ 274,000 Direct—Sewing 117,000 Indirect 172,000 Labor used Direct—Weaving $ 1,400,000 Direct—Sewing 485,000 Indirect 1,500,000 Overhead rates as a percent of direct labor Weaving 90 % Sewing 150 % Sales (on credit) $ 4,050,000 1. Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods.

Accountants generally follow the lower of cost or market (LCM) basis of inventory valuations. a. Define cost as applied to the valuation of inventories b. Define market as applied to the valuation of inventories. c. Why are inventoies valued at the lower of cost or market? d. List the arguments against the use of the LCM method of valuing inventories.

Accountants have advocated two types of income statements based on differing views of the concept of income: the current operating performance and all-inclusive concepts of income. How would the following items be handled under each concept? 1. Cost of Goods Sold 2. Selling expenses 3. Prior period Adjustments

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,930 $ 6 For the current year: Purchase, March 21 6,010 5 Purchase, August 1 4,120 3 Inventory, December 31, current year 2,900 Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.