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Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000

2/16/2016

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Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was $1,500, what is the cost per unit if Zonker Inc. pays the freight charges? If these items were bought on 2/10, n/30 terms and the invoice and the freight bill were paid within the 10-day period, what would be the cost per unit?


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Floyd Corporation has the following four items in its ending

2/13/2016

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Floyd Corporation has the following four items in its ending inventory.


Determine the final lower-of-cost-or-market inventory value for each item.

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Lower-of-Cost-or-Market Garcia Home Improvement Company installs replacement siding

2/13/2016

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Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2012, for $54,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10 years. Prepare Celine Dion s journal entries to record the purchase of the patent and 2012 amortization.
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Matlock Company uses a perpetual inventory system. Its beginning inventory

2/13/2016

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Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 50 units that cost $34 each. During June, the company purchased 150 units at $34 each, returned 6 units for credit, and sold 125 units at $50 each. Journalize the June transactions.
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Included in the December 31 trial balance of Rivera Company

2/13/2016

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What is the dollar-value method of LIFO inventory valuation

2/13/2016

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How might a company obtain a price index in order

2/13/2016

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How might a company obtain a price index in order to apply dollar-value LIFO?
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FIFO, weighted-average, and LIFO methods are often used instead

2/13/2016

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FIFO, weighted-average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing the theoretical propriety of each method in the determination of income and asset valuation.
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Ford Motor Co. is considering alternate methods of accounting fo

2/13/2016

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Ford Motor Co. is considering alternate methods of accounting for the cash discounts it takes when paying suppliers promptly. One method suggested was to report these discounts as financial income when payments are made. Comment on the propriety of this approach.
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Distinguish between product costs and period costs as they relat

2/13/2016

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Distinguish between product costs and period costs as they relat
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