Thanksgiving Inc. had three products in its ending inventory at December 31, 2016. Turkey has a profit
Question:
Thanksgiving Inc. had three products in its ending inventory at December 31, 2016. Turkey has a profit margin of 15% of the sales price and a profit margin of 10% for both stuffing and cranberries. When Thanksgiving sells its products, it usually incurs selling costs equal to 5% of the selling price. The chart below gives further information about each product:
- Determine LCNRV for the Turkey, Stuffing, and Cranberries individually.
- What is the amount of the write-down required under U.S. GAAP?
- What is the amount of the write-down required under IFRS?
- If assessed on an overall (meal) basis, what would be the write-downs?
- How would your answer to a. change, if we got into a time machine and were talking about December 31, 2014?
Thanks giving Still had the same three products in its inventory at December 31, 2017, described below:
Thanks giving still has a profit margin of 15% of the sales price and a profit margin of 10% for both stuffing and cranberries. When Thanksgiving sells its products, it usually incurs selling costs equal to 5% of the selling price. The chart below gives further information about each product:
- Using an item-by item basis, what is the amount of write-down reversal (if any) required using US GAAP?
- Using an item-by-item basis, what is the amount of write-down reversal (if any) required using IFRS?
- What are the necessary journal entries.
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood