Winnebago Industries, Inc. is a leading manufacturer of motor homes (A+)

Winnebago Industries, Inc. is a leading manufacturer of motor homes. Winnebago reported ending inventory at August 25, 2007, of $101,208,000 under the LIFO inventory method. In the notes to its financial statements, Winnebago reported a LIFO reserve of $32,705,000 at August 25, 2007. What would Winnebago Industries\’ ending inventory have been if it had used FIFO?

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At December 31, 2006, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc (A+)

At December 31, 2006, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377; beginning inventory $119,035; cost of goods sold $349,114; and sales revenue $761,865. Calculate the inventory turnover ratio and days in inventory for Oakley, Inc. (Round the inventory turnover ratio to 3 decimal places, e.g. 1.205 and the days in inventory to 0 decimal places, e.g. 120.)

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2. O’Connor Video Center accumulates the following cost and market data at December 31 (A+)

O’Connor Video Center accumulates the following cost and market data at December 31.

Inventory Categories Cost Data Market Data

Cameras $12,500 $13,400

Camcorders 9,000 9,500

DVD\’s 13,000 12,800

Compute the lower of cost or market valuation for O\’Connor\’s inventory.

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For each of the following cases, state whether the statement is true for LIFO or for FIFO (A+)

For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume that prices are rising.

(a) Results in a higher quality of earnings ratio.

(b) Results in higher phantom profits.

(c) Results in higher net income.

(d) Results in lower taxes.

(e) Results in lower net cash provided by operating activities.

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In its first month of operation, Maze Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 150 units for $8 (A+)

In its first month of operation, Maze Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 150 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method

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The management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense (A+)

he management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:

(a) Provide the highest net income?

(b) Provide the highest ending inventory?

(c) Result in the lowest income tax expense?

(d) Result in the most stable earnings over a number of years?

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Jack Penny Company identifies the following items for possible inclusion in the physical inventory (A+)

Jack Penny Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking.

(a) Goods shipped on consignment by Penny to another company.

(b) Goods in transit from a supplier shipped FOB destination.

(c) Goods sold but being held for customer pickup.

(d) Goods held on consignment from another company

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Hanson Comp uses a periodic inventory system (A+)

Hanson Comp uses a periodic inventory system. For 2012, its beginning inventory was 74,000 purchased of inventory were 328,000 and inventory at the end of the period was 89,000. What was the amount of Hanson\’s cost of goods sold for 2012?

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The Following information for the year 2012 is taken from the accounts of Thomwood Company (A+)

The Following information for the year 2012 is taken from the accounts of Thomwood Company. The company uses the periodic inventory method: Inventory Jan 1, 2012: $2000 Purchases: 10000 Purchase returns and Allowances: 200 Purchase discounts: 100 Freight on goods purchased under terms FOB shipping point: 400 Cost of Goods sold: 7100 1) Based on this information the inventory at Dec 31, 2012 is?

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Kehow Co uses a periodic inventory System (A+)

Kehow Co uses a periodic inventory System. The company had begining inventory of 400 and ending inventory of 200. Kehoe\’s cost of goods sold was 1600. Based on this information, Kehoe must have purchased inventory amount to?

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