Complete M6-14, M6-16 and M6-18.
Wong Corporation reports the following beginning inventory and inventory purchases. 400 units $12 each 6-35 Module 61 Asset Recognition and Operating Assets LO1 M6-14. Computing Cost of Goods Sold and Ending Iaventory Under FIFO, LIFO, and Aver Inventory balance at beginning of year... Inventory purchased during the year.... 700 units@ $14 each 1,100 units Cost of goods available for sale during the year..... Wong sells 600 of its inventory units during the year. Compute the cost of goods sold for the yeat inventory on the year -end balance sheet under the following inventory costing methods: c. Average Cost Abercrombie & Fitch Co. (ANF) and TJX Companies Inc. (TJX) report the following their respective January 2016 10-K reports relating to their 2013 and 2014 fiscal years. LO3 M6-15. Computing and Evaluating Inventory Turnover for Two Abercrombie& Fitch TJX Cost of Cost of millions Sales Goods Sold Inventories Sales Goods Sold M6-21. $3,519 $1.361 $3.696 3,218 2015 $30.945 $22,035 29,078 20,777 a. Compute the 2015 inventory turnover for each of these two retailers. difference confirm your expectations given their respective business models? Explain. Hint: ANF is a higher-end retailer and TJX sells more value-priced clothing-) e. Describe ways that a retailer can improve its inventory tumover LO2 M6-16. Reformelating Balance Sheet and Income Statement Items for LIFO to FIFO ADJUSTMENTS & In is December 2016 10-K. LyondellBasell Industries reportied the following information (S millions) of Goods Sold Inventories LIFO Reserve Increase in LIFO Reserve Total Assets Net 22,127 $3,809 $499 $426 $23,442 $3.837 Reformulate the account balance for the following financial statement items assuming the comparry used FIFO instead of LIFO for its inventory costing method. The company has a 35% me b, Total assets c. Cost of goods sold d. Net income LO4 M6-17. Computing Depreciation Under Straight-Line and Double-Declining-Balance A delivery van costing $37,000 is expected to have a $2,900 salvage value at the end of its useful life o five years. Assume that the truck was purchased on JanuaryCompute the depreciation expense for the first two calendar years under the following depreciation methods. a Straight-line b. Double -declining-balance Computing Depreclation Under Straight-Line and Double-Declining-Balance for Partial Years LO4 M6-18. A company with a calendar year-end, purchases a machine costing $129,000 on July 1.2016. The machine is expected to be obsolete after five years (60 months) and, thereafter, no longer useful to the company The estimated salvage value is $6,.000. The company's depreciation policy is to recond depreciation 1u7 the portion of the year that the asset is in service. Compute depreciation expense for both 2016 and 20 under the following depreciation methods pl a Straight-line b. Double-declining-balance
