Lower-of-cost-or-market-journal entries

Assignment Help Cost Accounting
Reference no: EM13553747

Lower-of-Cost-or-Market-Journal Entries Dover Company began operations in 2010 and determined its ending inventory at cost and at lower-of-cost-or-market at December 31, 2010, and December 31, 2011. This information is presented below.

Cost Lower-of-Cost-or-Market

12/31/10 $346,000 $322,000
12/31/11 410,000 390,000

(a) Prepare the journal entries required at December 31, 2010, and December 31, 2011, assuming that the inventory is recorded at lower-of-cost-or-market, and a perpetual inventory system (direct method) is used.

(b) Prepare journal entries required at December 31, 2010, and December 31, 2011, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year-end under a perpetual system.

(c) Which of the two methods above provides the higher net income in each year?

Reference no: EM13553747

Questions Cloud

Estimate where is the image located : An object with a height of 2.44 cm is placed 35.3mm to the left of a lens with a focal length of 33.2 mm. Where is the image located
Calculate the profitability of each customer type : Calculate the profitability of each customer type. Discuss the problems with this measure of customer profitability and calculate the profitability of each customer category.
What is the speed of a satellite orbiting : Consider a spherical asteroid with a mass of 6.00×10^15 kg and a radius of 9.70 km. What is the speed of a satellite orbiting 6.00 km above the surface
Obtain the magnitude of the average emf induced in antenna : A flat coil of wire is used with an LC-tuned circuit as a receiving antenna. The coil has a radius of 0.25 m and consists of 480 turns. find the magnitude of the average emf induced in the antenna
Lower-of-cost-or-market-journal entries : Prepare the journal entries required at December 31, 2010, and December 31, 2011, assuming that the inventory is recorded at lower-of-cost-or-market, and a perpetual inventory system (direct method) is used.
Swung in a horizontal circle with a circumference : A 2 kg mass is attached to a rope that that is swung in a horizontal circle with a circumference of 3 meters. What must be the tension in the rope so that the ball just misses the top of the 3 meter wall?
Direct write-off method : How much higher would Rustic Tables' 2014 net income have been under the direct write-off method than under the allowance method - Journalize the transactions for 2014 under the direct write-off method.
Estimate the average current in the coil during that time : A circular coil enclosing an area of 160 cm2 is made of 190 turns of copper wire.  what is the average current in the coil during that time
Would this be an elastc or inelastic collison : A hockey goalie in full gear has a mass of 100.kg. A 0.145 kg puck is shot at him with a veloctiy of 49m/s. Would this be an elastc or inelastic collison? Explain?

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  1or the pair of functions evaluate the domain of f gfx

1.for the pair of functions evaluate the domain of f g.fx 2x -9 gx 4x -3.2.for the pair of functions evaluate the

  Define internal control deficiencies

For each of the subsequent items, reply A (Agree) or D (Disagree) indicating whether the item shows an internal control deficiency.

  Prepare monthly cash budgets for each of first three months

According to a credit agreement with the company's bank, Kasik promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid ..

  Find how much direct labor should be budgeted for june

Looker Hats is planning to sell 600, and produce felt hats 700 during June. Each hat requires 1/2 yard of felt and 1/4 hour of direct labor. Felt costs $3.00 per yard and employees of the company are paid $20 per hour. Find How much direct labor s..

  How much per employee would the city have to invest today

A city government estimates that they must accrue $1.5 million per employee to finance each employee's retirement pension. If each employee works for an average of 30 years, how much per employee would the city have to invest today?

  Base your answer on the data from paxton inc for marchnbsp

base your answer on the data from paxton inc. for march.nbsp paxton uses the average costing method.paxton inc. for

  Total cost of manufactured shoes

Prepare for aytenew plc. The following accounts for the year ended 31: december 2013 and a manufacturing account showing the prime cost and total cost of manufactured shoes transferred to the trading account.

  How much assembly cost is assigned to titanium racquets

Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing and using activity-based costing, how much assembly cost is assigned to titanium racquets?

  On 1st january of the current year feller corporation

on 1st january of the current year feller corporation issued 3000000 of 10 percent debenture bonds on a basis to yield

  Entries for the transactions using a general journal

Prepare the entries for the transactions using a general journal - The old drill press and $65,000 in cash were given for the new drill press.

  Prepare an income statement for may

Prepare an income statement for May, a statement of owner's equity for May, a May 31 balance sheet, and a statement of cash flows for May.

  Describe tax revenue systems

Describe what other tax revenue systems could you consider and how do you think they would be better or worse?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd