A large manufacturer of truck and car tires currently

Assignment Help Cost Accounting
Reference no: EM13370316

A large manufacturer of truck and car tires currently changed its cost-flow assumption method for inventories at the starting of 2010. The manufacturer has been in operation for almost 40 years, and for the last decade, it has reported moderate growth in revenues. The firm changed from the LIFO method to the FIFO method and reported the subsequent information (amounts in millions):

December 31 2009 2010
Inventories at FIFO cost $ 788.10 $861.7
Excess of FIFO cost over LIFO cost $(429.0) $(452.4)
Cost of goods sold (FIFO) - $4,150.8
Cost of goods sold (LIFO) - $4,417.1

Determine the inventory turnover ratio for 2010 using the LIFO and FIFO cost-flow assumption methods. Describe why the costs assigned to inventory under LIFO at the end of 2009 and 2010 are so much less than they are underFIFO. 

Reference no: EM13370316

Questions Cloud

Human capital expendituresdo you think that expenditures on : human capital expendituresdo you think that expenditures on human capital could be treated as an asset or an expense?
Immigration consdebate the cons for subsequentimmigration : immigration consdebate the cons for subsequentimmigration policy-policy placing a limitation on number of people
Who should be paid moredecide which of the following you : who should be paid more?decide which of the following you favor and argue in favor of your position.a in favor of
Prepare corporate trainingas the corporate trainer for a : prepare corporate trainingas the corporate trainer for a fortune 500 company you have to create a revised new hire
A large manufacturer of truck and car tires currently : a large manufacturer of truck and car tires currently changed its cost-flow assumption method for inventories at the
Bonanza trading stamps inc was formed untimely this year to : bonanza trading stamps inc. was formed untimely this year to sell trading stamps throughout the southwest to retailers
Harrys picture manufactures diverse picture frames he : harrys picture manufactures diverse picture frames. he spends 20 on raw material for each frame. every new employee
In 2000 june a 75-year-old widow creates an irrevocable : in 2000 june a 75-year-old widow creates an irrevocable trust naming her five adult grandchildren as the beneficiaries.
Question 1 greetings online disposed of a van that cost : question 1 greetings online disposed of a van that cost 22000 with accumulated depreciation of 15000.the journal entry

Reviews

Write a Review

Cost Accounting Questions & Answers

  Advantages and disadvantages of forming the business

Provide a summary to the partners, outlining the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation

  Change a products demand curve

Reducing the price of a substitute product the firm also produces and reducing the price of a complementary product the firm also produces.

  Cost-volume-profit analysis for non accountants

Preparing a seminar on cost-volume-profit analysis for non accountants

  Find finch''s dpgr per unit

Finch supplies remaining components and assemble the final product at a cost $340. Finch's marketing, packaging, and shipping expenses total $40 per unit. Each unit is sold for $2,800.

  Define and discuss the federal/private audit gap

An agency's Performance and Accountability Report (PAR) is considered a primary source of planning information. Why is this? When are PARs due (in draft and in final)?

  Evaluate the effect on the profit of the whole company

What would be the effect on the profit of the whole company, if the Training Centre was closed at the beginning of the New Year? Given the allocated costs at 10% of revenue, calculate the number of workshops that must be offered to break-even.

  Critically discuss major ethical issues raised by awb

Critically discuss the major ethical issues raised by the AWB scandal. You are required to make references to the unit materials and need to do scholar research to support your discussion.

  Provide evidence that the system is operating correctly

Included in the Acceptance Testing will be verification of the system outputs, ie reports etc. What types of activities could Andrew include in the Acceptance Test to provide evidence that the system is operating correctly?

  Prepare easy fictitious financial statements

Evaluate the detail information - Prepare easy fictitious financial statements and write notes for the fictitious annual report.

  What budget the companys bookkeeper mistakenly recorded

For each of the following errors, describe to a recently hired bookkeeper how it would be shown on a cash reconciliation: The bank recorded a deposit of $200 as $2,000. The company's bookkeeper mistakenly recorded a deposit of $530 as $350.

  Discuss the problems of estimating overhead cost

Discuss key assumptions and limitations of the regression models which you considered and Discuss the problems of estimating overhead cost at the following projected activity level

  Examine the effect of changes in the variable cost

Examine the effect of changes in the variable cost / fixed cost structure of the company on cost-volume analysis decisions by managers.

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