2019. Assume the company would begin LIFO at the beginning of 2017.
(1) Year-end inventory balances. (2) Annual net income after taxes. (3)
Earnings per share. (4) Cash balance. Assume all sales are collected in
the year of sale and all purchases, operating expenses, and taxes are paid
during the year incurred. (b) Using the data above, your answer to (a),
and any additional issues you believe need to be considered, prepare a
report that recommends whether or not Harrisburg Company should
change to the LIFO inventory method. Support your conclusions with
appropriate arguments. P9-3 (LO1) (LCNRV--Cost-of-Goods-Sold and
Loss) Malone Company determined its ending inventory at cost and at
LCNRV at December 31, 2017, December 31, 2018, and December 31,
2019, as shown below. (a)Prepare the journal entries required at
December 31, 2018, and at December 31, 2019, assuming that a
perpetual inventory system and the cost-of-goods-sold method of
adjusting to LCNRV is used. (b)Prepare the journal entries required at
December 31, 2018, and at December 31, 2019, assuming that a
perpetual inventory is recorded at cost and reduced to LCNRV using the
loss method. P9-13 (LO7) GROUPWORK (Retail, LIFO Retail, and
Inventory Shortage) Late in 2014, Joan Seceda and four other investors
took the chain of Becker Department Stores private, and the company
has just completed its third year of operations under the ownership of the
investment group. Andrea Selig, controller of Becker Department Stores,
is in the process of preparing the year-end financial statements. Based on
the preliminary financial statements, Seceda has expressed concern over
inventory shortages, and she has asked Selig to determine whether an
abnormal amount of theft and breakage has occurred. The accounting
records of Becker Department Stores contain the following amounts on
November 30, 2017, the end of the fiscal year. (a)Describe the
circumstances under which the retail inventory method would be applied
and the advantages of using the retail inventory method (b) Assuming
that prices have been stable, calculate the value, at cost, of Becker
Department Stores' ending inventory using the last-in, first-out (LIFO)
retail method. Be sure to furnish supporting calculations. (c) Estimate
the amount of shortage, at retail, that has occurred at Becker Department
Stores during the year ended November 30, 2017. (d) Complications in