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signed a long-term non cancelable purchase commitment with its
largest supplier of this raw material on November 30, 2014,at an
agreed price of $400,0000. At December 31, 2014, the raw material
had declined in price to $365,000. What entry would you make on
December 31, 2014, to recognize these facts?
5) Tim Legler requires an estimate of the cost of goods loat by fire
on March 9. Merchandise on hand on January 1 was $38,000.
Purchases since January 1 were $72,000; freight-in $3,400;
purchases returns and allowances, $2,400. Sales are made at 33 1/3%
above cost and totaled $100,000 to March 9. Goods coasting $10,900
were left undamaged by the fire; remaining goods were destroyed.
(a). compute the cost goods destroyed. (b). compute the cost goods
destroyed, assuming that the gross profit 33 1/3% of sales.
6) Presented below is information related to Ricky Henderson
Company. Compute the inventory by the conventional retail
inventory method.
7) The inventory section of Maddox’s balance sheet as of
November 30,2014, including required foot notes, is presented below
are the inventory section supporting calculations.
8) All of the following are key similarities between GAAP and
IFRS with respect to accounting for inventories except:
9) Starfish Company (a Company using Gap and LIFO inventory
method) is considering changing to IFRS and the FIFO inventory
method. How would a comparison of these methods affect Starfish’s
financials?
10) Assume that Darcy industry had the following inventory values.
1. Inventory cost (on December 31,2014)$1,500
2. Inventory sales value (on December 31,2014)$1,350
3. Inventory net realizable value (on December 31,2014)$1,320
Under IFRS, what is the inventory carrying value on December 31,
2014 ?
11) Under IFRS, agricultural activity results in which of the
following types of assets?
1. Agricultural produce
2. Biological assets
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