This is quiz for my course.

I need solutions for each questions and answer. I need help. It is due on Friday night.

Ch. 8 & 9 quiz

Davidson Co. began the month of April with 120 units in inventory at a cost of $8 pe

r unit. Davidson had the following inventory activity during the month:

	units
Purchase, April 3	60	$12(unit cost)
Sale, April 10	80
Purchase, April 18	50	$15
Purchase, April 23	80	$16
Sale, April 28	100

Also, assume that Davidson estimates the selling price of its inventory to be $20 per unit, with a cost to sell of $3 and normal profit margin of $8. The current replacement cost is $7. Assume the company uses the direct method of reducing inventory to market, when necessary.

Assuming Davidson uses the perpetual LIFO valuation method, ending inventory at April 30 would be:

What amount should the company report as total ending inventory on the balance sheet as of April 30?

What amount should the company report as total COGS on the income statement for the period ended April 30?

Revolution Hardware completed a physical count of inventory on December 31, Y1 in its warehouse and determined the amount of ending inventory to be $300,000. Additional information is as follows:

• Included in the Y1 physical count were machines billed to a customer FOB shipping point on December 31. These machines had a cost of $12,000 and had been billed at $30,000. The shipment was on Revolution's loading dock waiting to be picked up by the common carrier at the close of the business day.
• Inventory was in transit from a vendor to Revolution. The invoice cost was $35,000 and the goods were shipped FOB Shipping point on December 29, Y1.
• Work-in-process inventory with a cost of $5,000 was sent to an outside processor for finishing on December 30, Y1.
• Inventory not physically in the warehouse because they are being sold elsewhere on consignment amounted to $19,550 (sales price). Markup is 15% on cost.

Determine the correct balance of ending inventory for Revolution Hardware as of December 31, Y1:

Dexter, Inc. follows a calendar-year end. Its financial statements for the years Y2 and Y1 contained errors as follows:

	y2
Ending Inventory	$3,000 Overstated	$8,000 overstated(y1)

Assume that no correcting entries were made at in either year. Determine the following:

Indicate the effect on Y1 Net Income (Ignore taxes. Indicate O for Overstated; U for Understated; or NE. STATE THE O/U/NE first, then the DOLLAR AMOUNT of the error. Do not put a space in between the O/U/NE and the dollar amount.)

Indicate the effect on Y1 Ending Retained Earnings (Ignore taxes. Indicate O for Overstated; U for Understated; or NE. State the O/U/NE first, then the dollar amount Do NOT put a space in between the O/U/NE and the dollar amount.)

Use the codification to search for guidance related to applying Lower of Cost or Market (LCM) rules to inventory. Which paragraph describes the replacement cost of inventory (as defined within your in-class notes as the US Market Value)? Submit your answer as XX-XX-XX-XX, or for example with numbers: 600-10-30-9. If you miss this question and believe it?s due to formatting, let me know.

Navigate to Codification 330-10-30 and use the GAAP rules within this section to confirm which of the below statements to be true?

• All companies within a given industry are required to use the same method of inventory pricing (comparability)

• Inventory spoilage may be recorded as a portion of inventory cost

• All companies are required to use the same basis of accounting for inventory over the years (consistency)

• General and administrative expenses are never allowed to be included as a product cost

Ch. 8 & 9 quiz Davidson Co. began the month of April with 120 units in inventory at a cost of $8 per unit. Davidson had the following inventory activity during the month: Units Unit Cost Purchase, April 3 60 $12 Sale, April 10 80 Purchase, April 18 50 $15 Purchase, April 23 80 $16 Sale, April 28 100 Also, assume that Davidson estimates the selling price of its inventory to be $20 per unit, with a cost to sell of $3 and normal profit margin of $8. The current replacement cost is $7. Assume the company uses the direct method of reducing inventory to market, when necessary. Assuming Davidson uses the perpetual LIFO valuation method, ending inventory at April 30 would be: What amount should the company report as total ending inventory on the balance sheet as of April 30? What amount should the company report as total COGS on the income statement for the period ended April 30? Revolution Hardware completed a physical count of inventory on December 31, Y1 in its warehouse and determined the amount of ending inventory to be $300,000. Additional information is as follows: Included in the Y1 physical count were machines billed to a customer FOB shipping point on December 31. These machines had a cost of $12,000 and had been billed at $30,000. The shipment was on Revolution's loading dock waiting to be picked up by the common carrier at the close of the business day. Inventory was in transit from a vendor to Revolution. The invoice cost was $35,000 and the goods were shipped FOB Shipping point on December 29, Y1. Work-in-process inventory with a cost of $5,000 was sent to an outside processor for finishing on December 30, Y1. Inventory not physically in the warehouse because they are being sold elsewhere on consignment amounted to $19,550 (sales price). Markup is 15% on cost. Determine the correct balance of ending inventory for Revolution Hardware as of December 31, Y1: Dexter, Inc. follows a calendar-year end. Its financial statements for the years Y1 and Y1 contained errors as follows: Y2 Y1 Ending Inventory $3,000 Overstated $8,000 overstated Assume that no correcting entries were made at in either year. Determine the following: Indicate the effect on Y1 Net Income (Ignore taxes. Indicate O for Overstated; U for Understated; or NE. STATE THE O/U/NE first, then the DOLLAR AMOUNT of the error. Do not put a space in between the O/U/NE and the dollar amount.) Indicate the effect on Y1 Ending Retained Earnings (Ignore taxes. Indicate O for Overstated; U for Understated; or NE. State the O/U/NE first, then the dollar amount Do NOT put a space in between the O/U/NE and the dollar amount.) Use the codification to search for guidance related to applying Lower of Cost or Market (LCM) rules to inventory. Which paragraph describes the replacement cost of inventory (as defined within your in-class notes as the US Market Value)? Submit your answer as XX-XX-XX-XX, or for example with numbers: 600-10-30-9. If you miss this question and believe it's due to formatting, let me know. Navigate to Codification 330-10-30 and use the GAAP rules within this section to confirm which of the below statements to be true? All companies within a given industry are required to use the same method of inventory pricing (comparability) Inventory spoilage may be recorded as a portion of inventory cost All companies are required to use the same basis of accounting for inventory over the years (consistency) General and administrative expenses are never allowed to be included as a product cost