Reference no: EM13871671
Wiki Art Gallery (WAG) Access the Wiki Art Gallery (WAG) instructional case in Connect and read the case in sufficient depth to answer the following questions.
1. What inventory costing method(s) does WAG use for determining the cost of artwork purchased as individual pieces?
a. WAG uses FIFO.
b. WAG uses Specific Identification.
c. WAG uses a combination of FIFO and Specific Identification.
d. WAG uses a combination of Average Cost and Specific Identification.
2. What assumption is WAG making when accounting for the cost of artwork purchased in lots?
a. WAG is assuming the first artwork purchased is the first artwork sold.
b. WAG is assuming the last artwork purchased is the first artwork sold.
c. WAG is assuming the pieces of artwork are interchangeable and do not vary in value.
d. WAG is assuming the pieces of artwork are uniquely identifiable.
3. For the 20 original oil paintings purchased on August 20, determine the amounts that WAG included in the cost of artwork sold and cost of artwork remaining in ending inventory after the sale of two pieces to TEAC.
a. Cost of artwork sold includes $ 20,000 and ending inventory includes $ 20,000.
b. Cost of artwork sold includes $ 10,000 and ending inventory includes $ 10,000.
c. Cost of artwork sold includes $ 18,000 and ending inventory includes $ 2,000.
d. Cost of artwork sold includes $ 2,000 and ending inventory includes $ 18,000.
4. Assume that the two paintings sold to TEAC represented 40 percent of the total value of the 20 original oil paintings purchased on August 20. Determine the amounts that WAG would include in the cost of artwork sold and cost of artwork remaining in ending inventory after the sale of two pieces to TEAC.
a. Cost of artwork sold would include $ 8,000 and ending inventory would include $ 12,000.
b. Cost of artwork sold would include $ 12,000 and ending inventory would include $ 8,000.
c. Cost of artwork sold would include $ 8,000 and ending inventory would include $ 20,000.
d. Cost of artwork sold would include $ 20,000 and ending inventory would include $ 8,000.
5. WAG's notes to the financial statements indicate the company reports its inventory at the lower of cost or market. What facts suggest a write-down may be required but has not been recorded by WAG?
a. The market value of inventory is estimated by WAG's management, and Rob may be biased in thinking that WAG's inventory can be sold to TEAC.
b. WAG's inventory contains aging, less attractive items.
c. The 2011 income statement does not include an inventory write-down expense.
d. All of the above.
|
What are intellectual property rights
: What are intellectual property rights? How are they at risk when the MNC has foreign operations? What is an investment agreement? What conditions might it include?
|
|
List two producers and three consumers in the food web
: Question - List two producers and three consumers in the food web.Criteria - 150 words; cite any source(s) used.
|
|
Remaining lifetime in association
: 1. The fatigue life for a certain alloy at stress levels of σ1, σ2, and σ3 is 10,000, 50,000, and 500,000 cycles, respectively. If a component of this material is subjected to 2500 cycles of σ1 and 10,000 cycles of σ2, estimate the remaining lifet..
|
|
What is protectionism and how can it affect the mnc
: What is protectionism, and how can it affect the MNC? What are blocked funds? How might they arise?
|
|
What inventory costing method does wag use
: What inventory costing method(s) does WAG use for determining the cost of artwork purchased as individual pieces? What assumption is WAG making when accounting for the cost of artwork purchased in lots? For the 20 original oil paintings purchased on..
|
|
What is difference between a macro and a micro country risk
: What is the difference between a macro and a micro country risk? Give an example of each. How is expropriation included in a discounted cash flow analysis of a proposed foreign investment?
|
|
Niki company reviewed the following situations
: At December 31, 2010, Niki Company reviewed the following situations to consider their impact on its 2010 financial statements:
|
|
Racial identity development and african american youth
: The purpose of this research paper is to magnify the effectiveness of preventive strategies that promote an incline in positive self esteem and racial identity in African American Youth. The goal is to identify the risks and strengthen black youth..
|
|
What is the principal balance on the loan
: You take out a 20-year $240,000 mortgage loan with an APR of 12% and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
|