net income in 1984 by $3.2 million. A final accounting change that Harnischfeger made was their inventory method. They changed from using the FIFO method to LIFO in 1984. Once this change was made the inventories that were valued using LIFO way made up about 82% of total inventories. The inventory reductions led to a liquidation of LIFO inventory that were carried at a lower cost.
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Assignment: See attached file Week3 D1: The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods
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Assignment: See attached file Week3 D1: The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods
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| | | | |4-3. |With inflation‚ what are the implications of using LIFO and FIFO inventory methods? How do they affect the cost of | | |goods sold?
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This document comprises ACC 206 Week 5 Final Paper Cost Accounting Principles of Accounting II Cost Accounting Accounting is the accumulation and aggregation of info for decision makers including administrators‚ traders‚ authorities‚ loan providers‚ as well as the general public. Accounting systems impact behavior and administration and have effects across divisions‚ companies‚ and even nations. This report will provide the reader a knowledge regarding cost accounting. This report will talk
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CHAPTER 1 INTRODUCTION THE PROBLEM AND ITS SCOPE Rationale Zipkin (2000)‚ states that every one of us deals with dozens of inventories daily without thinking too hard about them. At home‚ we stock supplies of foods‚ drinks‚ soap‚ and many other items‚ because they make life easier than it would be otherwise. During times of calamities when there is no electricity and gas for cooking‚ one’s stock of canned goods and other ready to eat foods are of great help. Olivario (1998) said that
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Age Balance 1-60 days 61-120 days 121-180 days Over 180 days $80‚000 Probability Uncollectible of Default 2% $70‚000 4% $40‚000 8% $32‚000 11% Total PART II Directions: 1) Calculate the inventory cost for both periodic and perpetual method LIFO and FIFO using the following information and table below to fill in the shaded areas: Jan. 5 - purchase 400 pieces of inventory on account at $20 each. Feb. 10 - sold 100 pieces of inventory with cash. Selling price is $85 each. April. 25 - sold 30
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E5-11 a) Compute Payton’s gross profit. GROSS PROFIT = 900‚00 - 540‚000 = $ 360‚000 ______________________________________ b) Compute the gross profit rate. Why is this rate computed by financial statement users? (360‚000/900‚000)/100 = 4/10of 100 = 40% This is known as the GROSS PROFIT MARGIN. ______________________________________ c) What is Payton’s income from operations and net income? 1)Income from Operations = 360‚000 - 230‚000 = $130‚000. 2)Net Income = 130‚000 - 11‚000
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According to the title of the statement‚ scandals are useful in certain areas by calling our attention to some problems in ways that no speaker or reformer ever could. Undeniably‚ it is quite appealing staying at a normative position‚ and I consent insofar as scandals do have positive effect. Nevertheless‚ scandals can sometimes distract our attention from more important things and thus reflect their negative side. It’s true that the speaker’s assertion that scandals can be useful in politics‚ academia
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goods available for sale must be allocated between cost of goods sold and ending inventory. FIFO cost flow assumption: The cost of items purchased earliest are the costs that will be transferred first to cost of goods sold on the income statement. LIFO cost flow assumption: The cost of items purchased latest are the costs that will be transferred first to cost of goods sold on the income statement. 4 methods used to assign costs to inventory and cost of goods sold 1. Specific Identification 2. First-in
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