Discuss why it is appropriate for happlia to use this method

Assignment Help Accounting Basics
Reference no: EM131000523

Happlia Co. imports household appliances. Each model has many variations and each unit has an identification number. Happlia pays all costs for getting the goods from the port to its central warehouse in Des Moines. After repackaging, the goods are consigned to retailers. A retailer makes a sale, simultaneously buys the appliance from Happlia, and pays the balance due within one week.
To alleviate the overstocking of refrigerators at a Minneapolis retailer, some were reshipped to a Kansas City retailer where they were still held in inventory at December 31, 2011. Happlia paid the costs of this reshipment. Happlia uses the specific identification inventory costing method.

Required:

1. In regard to the specific identification inventory costing method:

a. Describe its key elements.

b. Discuss why it is appropriate for Happlia to use this method.

2. a. What general criteria should Happlia use to determine inventory carrying amounts at December 31, 2011?

b. Give four examples of costs included in these inventory carrying amounts.

3. What costs should be reported in Happlia's 2011 income statement? Ignore lower of cost or market considerations.

Reference no: EM131000523

Questions Cloud

What costs does sport chalet include in its inventory : In addition to the direct acquisition costs such as the price paid and transportation costs to obtain inventory, what other expenditures might be necessary to bring the inventory to its desired condition and location?
Sphere with uniform volume charge density : Sphere with uniform volume charge density, solve the second problem onl
Write and present a report on the marketing mix : Write and present a report on the marketing mix in their own workplace on a workplace that they are familiar with. The full report should address the evaluation of component within the marketing mix and marketing performance.
Find the solution to the homogeneous differential equation : Write the differential equation as a system of first order differential equations expressed in matrix form. For each system, find the equilibrium points. Find the solution to the homogeneous differential equation using the eigenvalues and eigenvector..
Discuss why it is appropriate for happlia to use this method : What general criteria should Happlia use to determine inventory carrying amounts at December 31, 2011?
Determine constant of acceleration due to gravity on planet : On Planet X, an astronaut has maximum walking speed of 1.9 m/s. The astronaut's legs are each 1.3 m long. What is the constant of acceleration due to gravity on Planet X?
More successful in increasing revenue : One of your friends works at the local water utility and another works at a particular fast food restaurant. Both are considering raising their price to increase revenue and ask for your advice. Which of them would likely be more successful in increa..
Discount rate and the federal fund rate : Giving a brief explanation, determine the likely effect of each of the following on the value of GM stock.(Consider each event independent of the others.) a. The Federal Reserve lowers both the "discount" rate and the Federal Fund rate.
Prepare a report for the president describing the factors : Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Transferred to contributed capital

On July 2, 2010, Tobias declared a 15 percent stock dividend to be distributed on August 6, 2010, to shareholders of record on July 16, 2010. What amount of retained earnings should be transferred to contributed capital because of this dividend?

  Given bank rec info you will be asked to answer questions

what is involved in preparing a bank rec? how do deposits in transit affect a bank rec? how do nsf checks affect a bank

  Determine the tax consequences for innovation

Innovation, Inc., a 501(C) (3) medical research organization, makes lobbying expenditures of $1.1 million. Innovation incurs exempt purpose expenditures of $15 million in carrying out its medical research mission.

  You are in charge of the audit of the financial statements

you are in charge of the audit of the financial statements of hawk corporation for the year ended december 31. the

  A neighborhood restaurant opens for lunch only and has a

a neighborhood restaurant opens for lunch only and has a menu limited to five meals. the history of each menu item

  On march 18 weber issued 100 shares of preferred stock at

the following transactions are for weber corporation in 2010a.on march 1 the corporation was organized and received

  Actual and projected sales follow

Actual and projected sales follow.

  Designs inc income statement

Margaret Brown and Joel Lee each own 50% of Designs Inc. with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400.

  Royal financial services rfs provides front end loan

royal financial services rfs provides front end loan origination services for a number of banks who process and

  On march 1 2011 professor credit union pcu issued 6 20 year

on march 1 2011 professor credit union pcu issued 6 20 year bond payable with maturity value of 90000.the bonds pay

  Inyam purchased land for 400000 in 1988 the land was valued

1. in 2013 rocio invested 30000 in a cattle-feeding partnership that used nonrecourse notes to purchase 100000

  What is the total amount of interest that ozark earned

What is the total amount of interest that Ozark's earned on the loan to Ben Spell?

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