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ACCT304DeVryWeek7CompleteWork

ACCT 304 DEVRY WEEK 7 COMPLETE WORK LATEST

ACCT 304 DeVry Week 7 Complete Work Latest

ACCT 304 DeVry Week 7 DQ 1 LCM

The lower-of-cost-or-market (LCM) approach was developed to avoid reporting inventory at an amount greater than the benefits it can provide. The LCM approach records losses in the period the value of the inventory drops below its cost instead of later in the period that the goods are ultimately sold. Is this a conservative or an aggressive approach? What does GAAP say about LCM?

ACCT 304 DeVry Week 7 DQ 2 Inventory Errors

It is discovered in 2013 that ending inventory from 2011 is understated. What accounts will be affected by this understatement, and how will they be affected? This is a situation that really happens. Start with the 2011 inventory being understated, and track the changes through the inventory account ACCT 304 Week 7 to 2013.

ACCT 304 DeVry Week 7 Quiz

(TCO 8) Masterlink Co., in applying the lower of cost or market method, reports click here its inventory at net realizable value. Which of the following statements is ?

Option a

Option b

Option c

Option d

Question 2. Question : (TCO 8) Data related to the inventories of Costco Medical Supply is presented below:

In applying the LCM rule, the inventory of surgical supplies would be valued at

$115.

$90.

$80.

$69. ( )

Question 3. Question : (TCO 8) So. California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2011. In preparing its insurance claim on the inventory loss, it developed the following data: inventory January 1, 2011, $300,000; sales and purchases from January 1, 2011 to May 1, 2011, $1,300,000 and $875,000, respectively. So. California Inc. consistently reports a 40% gross profit. The estimated inventory on May 1, 2011 is

$302,500.

$360,000.

$395,000.

$455,000.

Question 5. ACCT 304 DEVRY WEEK 7 COMPLETE WORK LATEST Question : (TCO 8) Retrospective treatment of prior years’ financial statements is not required when there is a change from

average cost to FIFO.

FIFO to LIFO.

LIFO to average cost.

All of the above

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