Intermediate Accounting 550 . Please answer all questions.

E8-3(Inventoriable Goods and Costs) Assume that in an annual audit of Harlowe Inc. at December 31, 2017, you find the following transactions near the closing date. 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2017. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2018. 2. Merchandise costing $2,800 was received on January 3, 2018, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2017, f.o.b. destination. 3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked \"Hold for shipping instructions.\" Your investigation revealed that the customer's order was dated December 18, 2017, but that the case was shipped and the customer billed on January 10, 2018. The product was a stock item of your client. 4. Merchandise received on January 6, 2018, costing $680 was entered in the purchase journal on January 7, 2018. The invoice showed shipment was made f.o.b. supplier's warehouse on December 31, 2017. Because it was not on hand at December 31, it was not included in inventory. 5. Merchandise costing $720 was received on December 28, 2017, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked \"on consignment.\" Instructions Assuming that each of the amounts is material, state whether the merchandise should be included in the client's inventory, and give your reason for your decision on each item. P8-4 (LO2) EXCEL (Compute FIFO, LIFO, and Average-Cost) Hull Company's record of transactions concerning part X for the month of April was as follows. Purchases Sales April (balance on 1 hand) 4 100 @ $5.00 April 30 5 0 400 @ 5.10 12 20 0 11 300 @ 5.30 27 80 0 18 200 @ 5.35 28 15 0 26 600 @ 5.60 30 200 @ 5.80 Instructions (a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in (1), (2), and (3) above? (Carry average unit costs to four decimal places.) E9-1 (LO1) EXCEL (LCNRV) The inventory of Oheto Company on December 31, 2017, consists of the following items. Part Quantity Cost per Unit Net Realiza ble Value 110 600 $ 95 $100 60 52 111 1,000 112 500 80 113 200 170 120 400 121a 1,600 122 300 205 76 180 208 16 240 1 235 Part No. 121 is obsolete and has a realizable value of $1 each as scrap. a Instructions 1. Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item. 2. Determine the inventory by the LCNRV method, applying the method to the total of the inventory. P9-12 (LO7) (Conventional and Dollar-Value LIFO Retail) As of January 1, 2017, Aristotle Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2017, you obtain the following data. Cost Selling Price Inventory, January 1 $ 30,0 $ 43,000 00 Markdowns 10,500 Markups 9,200 Markdown cancellations 6,500 Markup cancellations 3,200 Purchases 104,80 155,000 0 Sales revenue Purchase returns 154,000 2,800 4,000 Sales returns and 8,000 allowances Instructions (a) Prepare a schedule to compute Aristotle's June 30, 2017, inventory under the conventional retail method of accounting for inventories. (b) Without prejudice to your solution to part (a), assume that you computed the June 30, 2017, inventory to be $59,400 at retail and the ratio of cost to retail to be 70%. The general price level has increased from 100 at January 1, 2017, to 108 at June 30, 2017. Prepare a schedule to compute the June 30, 2017, inventory at the June 30 price level under the dollarvalue LIFO retail method. Questions: 1.What is lower of cost or net realizable value (LCNRV)? 2.How do you determine cost and how do you determine net realizable value of inventory? 3.We know that inventory is an important asset in a company, and the amount of inventory is constantly fluctuating. Can you identify the impact on the financial statement items when the ending inventory of a company is incorrectly stated? How many different accounts will be affected because of an inventory misstatement? Do the inventory control systems of periodic inventory and perpetual inventory effect the measurement of inventory when we use LIFO or FIFO