Question BE 8-1, BE 8-2, and BE 8-5
055,000 at December 31, 2017, prices. Using the ber 31, 2016, price level of 100 and the December 1price level of 108, compute the inventory value Decenber 31, 2017, under the dollar-value LIFO to goods in transit amounting to $214,000. This am was omitted from the purchases figure for the year also from the ending inventory. What is the effect of omission on the net income for the year as calcul when the books are closed? What is the effect on the c pany's financial position as shown in its balance shee materiality a factor in determining whether an adj ment for this item should be made? n an articke that appeared in the Wall Street Journal, the phrases "phantom (paper) profits' and "high LIFO profits" BRIEF EXERCISES BE8-1 (L01) Included in the December 31 trial balance of Rivera Company are the following assets $200,000 400,000 110,000 170,000 Cash Equipement (net) s190,000 Work in process 1,100,000 Accounts receivable (net) insurance335,000 1,000Patents 35,000 Finished goods Raw materials Prepare the current assets section of the December 31 balance sheet. BE8-2 (L01) Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 50 units that cost S each. During June, the company purchased 150 units at $34 each, Journalize the June transactions returned 6 units for credit, and sold 125 units at $50 ea Company took a physical inventory on December 31 and determined that goods costing $200,000 w purchased from Pelzer Corporation, fob. shipping poi BE8-3 (LO2) Stallman on hand. Not included in the physical count were $25,000 of goods and $22,000 of goods sold to Alvarez Company for $30,000, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale we in transit at year-end. What amount should Stallman report as its December 31 inventory? BE8-4 (LO3) ing information is available. Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the follo Unis Unit Coat Toetal Cost April 1 inventory April 15 purchase April 23 purchase Total Cost $ 2,300 4,800 4,550 $10 400 13 Compute the April 30 inventory and the April cost of goods sold using the average-cost method. BE8-5 (Lo3) Data for Amsterdam Company are presented in BE8-4. Compute the April 30 inventory and the April cost goods sold using the FIFO method. BEB-6 (Lo3) Data for Amsterdam Company are presented in BES-4. Compute the April 30 inventory and the April cost goods sold using the LIFO method. BEB 7 (LO4) Tr ut Company uses the LIFO method for financial reporting purposesbut FIFO for internal reporting purpos At lanuary 1, 2017, the LIFO reserve has a credit balance of $1,300,000. At December 31, 2017, Trout's internal reports indica that the FiFO inventory balance was $2,900,000 and for external reporting purposes the LIFO inventory balance was $1,500.0 What is the amount of the LIFO reserve and the LirO effect related to 20172 What is the journal entry needed to record the LI effect at December 31,2017? BEB-8 (L04) Midori Company had ending inventory at end-of-year prices of $100,000 at December 31. 20 December 31, 2017; and $134,560 at December 31, 2018. The year-end price indexes were 100 at 12/31/ and 116 at 12/31/18. Compute the ending inventory for Midori Com LIFO method. pany for 2016 through 2018 using the d
