Sedan Corporation, a Japanese automobile manufacturer, follows U.S. GAAP and reports its results in millions of yen

Question:

Sedan Corporation, a Japanese automobile manufacturer, follows U.S. GAAP and reports its results in millions of yen (Â¥). On March 31, 2013 and 2012, Sedan reported the following information pertaining to its inventories:

Sedan reported Cost of Products Sold for the year ended March 31, 2013, of Â¥20,452,338. Sedan reported no write-downs of inventory to lower of cost or market during either fiscal year.

a. What is the carrying value of Sedan's total inventory, as of March 31, 2013?

b. What was the cost of units completed by Sedan during 2012?

c. Suppose that Sedan's direct labor and overhead were Â¥12,000,000 million for the year ended March 31, 2013. How much in raw materials and supplies costs did Sedan charge to Work in Process during the year ended March 31, 2013? What journal entry did it make to record this charge?

d. What was the cost of Sedan's raw material and supplies purchased for the year ended March 31, 2013? Assuming all purchases were made on credit, what journal entry did Sedan make to record those purchases?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...