What factors should a company consider when choosing an

Assignment Help Accounting Basics
Reference no: EM13600254

The following schedule summarizes the inventory purchases and sales of Brooks Street Enterprises during January 2009:
# of Units Per Unit Cost Per Unit Selling Price
BI 400 $40
Jan. 2 purchase 200 44
Jan. 5 sale 300 $80
Jan. 9 purchase 200 48
Jan. 14 sale 350 90
Jan. 18 purchase 200 50
Jan. 21 sale 150 90
Jan. 25 purchase 500 52
Jan. 31 sale 450 100

a.) Determine Brooks Street's ending inventory, cost of goods sold, and gross profit for January 2009, assuming the company uses a perpetual inventory system and the following inventory costing methods: (1) FIFO, (2) LIFO, and (3) moving-average.

b.) Which of the three inventory costing methods yields the most impressive financial results for Brooks Street? Explain.

c.) What factors should a company consider when choosing an inventory costing method? Should one of these factors be the inventory costing method preferred by the decision makers who will be using the company's financial statements?

Reference no: EM13600254

Questions Cloud

Explain how a gain or loss on the disposal of a long-term : explain how a gain or loss on the disposal of a long-term asset is calculated. how do gains and losses differ
On december 1 2009 withers purchased land and a building : a partial balance sheet is presented for withers industries withers industries partial balance sheet december 312008
Staffing organization answer the following 5 questions : answer the following 5 questions below please use my course textbook only. ltbrgt ltbrgtcourse textbook ltbrgt
Supposed that jolie believes that the : brad jolie recently decided to open a restaurant specializing in new orleans cuisine. he purchased a restaurant
What factors should a company consider when choosing an : the following schedule summarizes the inventory purchases and sales of brooks street enterprises during january 2009
Provide a brief numerical example that would indicate why a : discuss how depreciation is calculated under the straight-line units-of-production and double-declining-balance
In a period of rising prices for a specific product does : in a period of rising prices for a specific product does the fifo or lifo inventory costing method yield the higher
Tiberand inc sold 150000 in inventory to schilling company : tiberand inc. sold 150000 in inventory to schilling company during 2010 for 225000. schilling resold 105000 of this
Fixed costs and the break-even point mini-kool hopes to : fixed costs and the break-even point mini-kool hopes to earn 70000 next year after taxes. sales will be 2500050. the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entry for accumulated depreciation

Greetings Online disposed of a van that cost $22000 with accumulated depreciation of $15000. The journal entry would be to:

  What is the amount of depreciation expense

Pisa, Inc. uses the straight-line method to depreciate similar assets. What is the amount of depreciation expense recorded by Pisa, Inc. in the first year of the asset's life?

  Identify the internal control principle

Identify the internal control principle that is applicable to each procedure - Company checks are prenumbered.

  Ab and c are partners with capital balances of 50000 30000

ab and c are partners with capital balances of 50000 30000 and 20000 and who share in the profit and loss of the abc

  Would company have had to raise more capital

However, the balance of accumulated depreciation was $400,000. In this scenario, would Company X have had to raise more capital?

  Report for tax purposes

On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note. The note is payable in five installments, with the first payment due next year. Because Silver did not elect out of the in..

  A loan officer states that thousands of dollars can be

a loan officer states that thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year

  Titus corporation and vane corporation two companies of

titus corporation and vane corporation two companies of roughly the same size are both involved in the manufacture of

  Berger paid for optional accident insurance for transport

berger company purchased equipment having an invoice price of 22500. the terms of sale were 310 n60 and berger paid

  Joyce age 40 and sam age 42 who have been married for seven

joyce age 40 and sam age 42 who have been married for seven years are both active participants in qualified retirement

  Enter a favorable variance as a negative number using a

belgian chocolate company makes dark chocolate and light chocolate. both products require cocoa and sugar. the

  If 2000 is invested now 2500 two years from now and 3000

if 2000 is invested now 2500 two years from now and 3000 four years from now at an interest rate of 7 what will be the

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