MVP Corp uses LIFO to value its inventory. The 2014 inventory records disclose the following: At December
Question:
MVP Corp uses LIFO to value its inventory. The 2014 inventory records disclose the following:
At December 26, 2014, the company had a special, nonrecurring opportunity to purchase 40,000 units at $ 17 per unit. The purchase can be made and the units delivered on December 30, or it can be delayed until the first week of January 2015. The company plans to make the purchase, owing to the obvious cost savings involved. Sales for 2014 totaled 245,000 units.
Team Debate:
Team 1: Describe the financial statement effects of making the purchase in 2014 as opposed to 2015. Argue for making the purchase during 2014. Defend the use of LIFO. Use the matching concept in your defense.
Team 2: Given the financial statement effects of the decision to purchase in 2014, argue against the use of LIFO and in favor of FIFO. Base your arguments on the conceptual framework— for example, representational faithfulness and neutrality. Use the matching concept in your argument.
Transcribed Image Text:
Beginning Inventory Uts nit Cost First layer Second layer Purchases 10,000 22,000 250,000 S15 18 20
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
Team 1 Defend LIFO Cost of goods sold if the purchase is postponed until 2015 Beginning Inventory First Layer 10000 x 15 150000 Second Layer 22000 x 18 396000 Purchases 250000 x 20 5000000 Available 2...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.