Question: Grape Leaf Ltd. began operations in 2013. The following presentation relates to the inventory valuations of the company at the end of the year using

Grape Leaf Ltd. began operations in 2013. The following presentation relates to the inventory valuations of the company at the end of the year using different inventory methods.

Required:
a. If Grape Leaf uses the weighted-average cost formula, what is the value of ending inventory in each of the four years?
b. If Grape Leaf uses the FIFO cost formula, what is the value of ending inventory in each of the four years?
c. What cost formula would you recommend Grape Leaf use if the inventory prices are falling during the four-year period? Explain your answer.

Date Dec. 31, 2013 Dec. 31. 2014 Dec. 3, 2015 Dec. 31, 2016 Weighted-Average $120.000 235.000 235.000 210.000 FIFO S110,000 225,000 245.000 235.000 NRV $105,000 230,000 235,000 235,000

Step by Step Solution

★★★★★

3.42 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a If Grape Leaf Ltd uses the weightedaverage cost formula the value of the ending inventory reported ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

468-B-A-V-I (1194).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The balance sheet of Poodle Company at the end of 2009 is presented here, along with certain other information for 2010: Other information is as follows: a. Net income for 2010 was $50,000. b....

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000. Instructions (a) If Hixson uses the direct...

The ledger of Montgomery Company at the end of the current year shows Accounts Receivable $78,000; Credit Sales $810,000; and Sales Returns and Allowances $40,000. Instructions (a) If Montgomery uses...

Gold Leaf Ltd. began operations in 2011. The following presentation relates to the inventory valuations of the company at the end of the year using different inventory methods. There was no beginning...

The following presentation relates to the inventory valuations of Aurora Inc. using different inventory methods (the company started operations in 19x1): Period LIFO FIFO Lower of FIFO Cost and...

18. The following presentation relates to the inventory valuations of Aurora Inc. using different inventory methods (the company started operations in 19x1): Lower of FIFO Period LIFO FIFO Cost or...

Riverton Retailers Ltd began operations on 28 June 2012 by purchasing $1,000,000 of inventory. There were no sales up to the end of the financial year ending 30 June 2012. For the year ended 30 June...

HI I need help to with my assessment. Anyone can help me? T-1.8.1 Details of Assessment Term and Year T2 2017 Time allowed Week 2, 3, 4, 5, 6, 7, 8 Assessment No 1 Assessment Weighting 60% Assessment...

Using the information, what is the cash flow from operating activites? Galaxy United, Inc. 2009 Income Statement Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and...

1. First, fill in the necessary information below. (Round to 2 decimal places when applicable). Metric System: 1 km= English System: 1 mile=_ Useful Metric to English Conversions 2. Complete the...

2 What was in the cloud the solar system formed from?

What are the assumptions and implications of NOI approach? Is there an optimal capital structure as per NOI approach?

Define cost as applied to the valuation of inventories.

Distinguish between product costs and period costs as they relate to inventory.

1)Return on assets (Use after-tax operating income and average assets.) 2)Return on capital (Use after-tax operating income and average capital.) 3) Operating profit margin (Use after-tax operating...

Simple PS The stock of Omicron Corp. is currently trading at $ 4 1 . 3 5 . The company just reported sales amounting to $ 1 3 million and has $ 2 million shares outstanding. Given that the benchmark...

Can someone please help me to this how on C Language? Lagrange Interpolation Polynomial will be created for the 5 points (n:0-4) given in the table. P(x) -3 -1 n xn 0-1 10 2 1 32 43 4 NO Print the...