PART 1: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 24,000 units consisted of the following, listed in chronological order of acquisition:

14,000 units at a cost of $9.00 per unit = $126,000
10,000 units at a cost of $10.00 per unit = 100,000

During 2021, inventory quantity declined by 14,000 units. All units purchased during 2021 cost $13.00 per unit.

Required:
Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note, assuming the amount determined is material.

PART 2: Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. Cast Iron’s December 31, 2021, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition):

The replacement cost of the grills throughout 2022 was $1,000. Cast Iron sold 37,000 grills during 2022. The company's selling price is set at 200% of the current replacement cost.

Required:
1. & 2. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2022 under two different assumptions. First, that Cast Iron purchased 38,000 units and, second, that Cast Iron purchased 20,000 units during the year.
4. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2022 assuming that Cast Iron purchased 38,000 units (as per the first assumption) and 20,000 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method.

Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2022 under two different assumptions. First, that Cast Iron purchased 38,000 units and, second, that Cast Iron purchased 20,000 units during the year. (Round "Gross profit ratio" answer to 1 decimal place (i.e., 0.123 needs to be entered as 12.3%.))

Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2022 assuming that Cast Iron purchased 38,000 units (as per the first assumption) and 20,000 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method. (Round "Gross profit ratio" answer to 1 decimal place (i.e., 0.123 needs to be entered as 12.3%.))

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In manufacturing its products for the month of September 2007, Gamma Company incurred normal spoilage of $7,000 and abnormal spoilage of $3,000. How much spoilage cost should Gamma charge as inventoriable for the month of September 2000?

How much spoilage cost should Gamma charge as inventoriable for the month of September 2000?

Gamma Company had the following production for the month of June: Units Work in process, June 1 6,000 Started during June 24,000 Completed and transferred to finished goods 18,000 Abnormal spoilage incurred 3,000 Work in process, June 30 9,000 Materials are added at the beginning of the process. As to conversion cost, work in process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process.

a. Using the weighted-average method, the equivalent units for June, with respect to conversion cost, were

b.Assume the manufacturing cost of the spoiled goods is $6,000. The journal entry to record the spoilage is

c. Using the first-in, first out (FIFO) method, the equivalent units for June, with respect to conversion cost, were

Based on which taxpayer is most likely to benefit by deducting state and local gerneral sales tax rather than the amount of state and local income taxes paid during the year? A. kim who purchased a lot of consumer goods during the year but neglected to keep her receipts B. rick self employed contractor who pays high sales tax onmaterials he used in his business. C. Terry who lives in high state taxes D. Maureen lives in state with no state tax

Often accounting methods are deemed acceptable in either GAAP or IFRS because they most faithfully represent the underlying transactions that they purport to measure. Sometimes, however, an accounting method is permitted that cannot, upon examination, describe and measure what really happened—such as LIFO in accounting for inventory. If LIFO cannot describe the manner in which goods actually flow through a business, why is it acceptable under US GAAP? How does LIFO provide improved information to the financial statement user, and on which financial statement do we find this improvement?

Question 3

Use the following data to prepare a common-size comparative income statement for Old Mill Corporation on December 31, 2016. Round percentages to one-tenth percent.

A step by step detail would be most helpful

"Revenue Recognition"

The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet or Strayer Library to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue in the five-step process. Provide support for your response

1. The income elasticity for most staple foods, such as wheat, is known to be between zero and one.

1. As incomes rise over time, what will happen to the demand for wheat?
2. What will happen to the quantity of wheat purchased by consumers?
3. What will happen to the percentage of their budgets that consumers spend on wheat?
4. All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?

2. Governments impose excise taxes on goods that have inelastic demand, such as cigarettes, more often than in other cases. Why?  

1. During the current Corona pandemic situation where most of the businesses are not working, the Government of Oman has allowed supermarkets to run. If you are a purchase manager of Nesto hypermarket, what procedure do you follow in the purchasing process of inventory, and how does your approach of purchasing change during this Pandemic situation?    

the government allowed supermarkets to operate in light of the spread of the Corona epidemic 19. how will you import your stock of goods in light of this epidemic and how will your new approach to buying be in this situation

1. If a company uses a periodic inventory system, it will use all of the following accounts during the year to record normal transactions  except: A. costs of goods sold; B. purchase returns; C. sales revenue; D. purchases.

2. Which of the following would be included in the Cost of Goods Sold account on a merchandising company's income statement? A. sales commissions; B. shipping costs from the manufacturer to the merchandiser; C. costs of advertising; D. sales taxes.

3. A manager of Company X gets a bonus if net income of a certain amount is achieved. If she had her 'druthers', she would love to use what method of inventory costing (in most situations and if permitted)? A. FIFO; B. LIFO; C. Specific identification; D. weighted-average

4. For most property, plant, and equipment, depreciation is caused by which of the following: A. changes in fair value; B. the process of valuation; C. obsolescence; D. setting aside cash to replace the assets when they wear out

5. Which of the following would not be included in the Machinery account? The cost of: A. freight costs; B. Tearing down a factory wall in order to get the large machine into the factory; C. Extra cost because the company didn't have the cash last year when machine prices were cheaper; D. Paying duty to American authorities for the American product

What is the osmolarity (Osm) of a quarter-normal 0.22 %(m/v)NaCl solution?