Accounting

Connect ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEPuW8vXK1ko8pRWII7y6a3-jeRJolr3ugxNrNZ5jimMEoLbiVYPWYOm--8M9kRX1... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit 3.33 Unit Replacement Selling points Product Quantity Cost Cost price monup 1, 00 $ 26 $28 $32 500 31 27 34 900 19 18 24 900 23 800 30 28 22 29 Book The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the Print selling price. Required: References 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations.) Product Inventory (units RC NRV NRV-NP Market Cost carrying value A (1000) B (500) C (900) D (900) E (800) Total $ 0 $ 0 $ Required 1 Required 2 > Grav Hill Windows Ink Workspace 11:48 PM Type here to search O 9 10/27/2020S Connect X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work 2 Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: 3.33 points Beginning inventory, FIFO (6,000 units @ $26) $156,000 Purchases: 6,000 units @ $32 $ 192, 000 6,000 units @ $36 216, 000 408,000 Cost of goods available for sale $564, 000 Book Sales for 2021 (7,000 units @ $76) $532, 000 Print Additional Information: a. The company's effective income tax rate is 25% for all years. References b. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $114,000. c. 11,000 units remained in inventory at the end of 2021. Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change ethods on 2021 net income? plete this question by entering your answers in the tabs below. Required 1 Required 2 What is the effect of the change in methods on 2021 net income? The effect of the change for the year 2021 is a in cost of goods sold resulting in a in income before taxes and a(n) in income after tax. Graw LO O 11:51 PM 10/27/2020S Connect X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work 2 Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: 3.33 points Beginning inventory, FIFO (6,000 units @ $26) $156, 000 Purchases : 6,000 units @ $32 $ 192, 000 6,000 units @ $36 216, 000 408,000 Cost of goods available for sale $564, 000 Book Sales for 2021 (7,000 units @ $76) $532, 000 Print Additional Information: a. The company's effective income tax rate is 25% for all years. References b. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $114,000. c. 11,000 units remained in inventory at the end of 2021. Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change ethods on 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. (If no entry is requi for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record adjustment to reflect average cost method. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Graw LO O 11:50 PM 10/27/2020S Connect X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work 3 You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021, you discover the following errors related to the 2019 and 2020 financial statements: 3.34 a. Inventory at December 31, 2019, was understated by $7,700. points b. Inventory at December 31, 2020, was overstated by $10,700. c. On December 31, 2020, inventory was purchased for $4,700. The company did not record the purchase until the inventory was paid for early in 2021. At that time, the purchase was recorded by a debit to purchases and a credit to cash. eBook The company uses a periodic inventory system. Required: 1. Assuming that the errors were discovered after the 2020 financial statements were issued, analyze the effect of the errors Print on 2020 and 2019 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to correct inventory valuation. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Graw LO O 11:52 PM 10/27/2020S Connect X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work 3 You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021, you discover the following errors related to the 2019 and 2020 financial statements: 3.34 a. Inventory at December 31, 2019, was understated by $7,700. points b. Inventory at December 31, 2020, was overstated by $10,700. c. On December 31, 2020, inventory was purchased for $4,700. The company did not record the purchase until the inventory was paid for early in 2021. At that time, the purchase was recorded by a debit to purchases and a credit to cash. eBook The company uses a periodic inventory system. Required: 1. Assuming that the errors were discovered after the 2020 financial statements were issued, analyze the effect of the errors Print on 2020 and 2019 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that the errors were discovered after the 2020 financial statements were issued, analyze the effect of the errors on 2020 and 2019 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2019 2020 Effect Amount Effect Amount Ending inventory Cost of goods sold Net income Retained earnings Graw LO O 11:52 PM 10/27/2020Connect ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEPuW8vXK1ko8pRWII7y6a3-jeRJolr3ugxNrNZ5jimMEoLbiVYPWYOm--8M9kRX1... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit 3.33 Unit Replacement Selling points Product Quantity Cost Cost price monup 1, 00 $ 26 $28 $32 500 31 27 34 900 19 18 900 23 24 22 800 30 28 29 Book The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the Print selling price. Required: References 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.) Inventory carrying value Grav Hill Windows Ink Workspace 11:49 PM Type here to search O 10/27/2020Connect ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEPuW8vXK1ko8pRWII7y6a3-jeRJolr3ugxNrNZ5jimMEoLbiVYPWYOm--8M9kRX1... R Chapter 9 Homework - Required i Saved Help Save & Exit Submit Check my work Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit 3.33 Unit Replacement Selling points Product Quantity Cost Cost price monup 1, 00 $ 26 $28 $32 500 31 27 34 900 19 18 900 23 24 800 30 28 22 29 Book The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the Print selling price. Required: References 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry workshee x No Transaction General Journal Debit Credit Cost of goods sold Inventory Grav Windows Ink Workspace Type here to search O 9 11:49 PM 10/27/2020