ADMS 4562 Lecture Notes - Fide

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Published on 6 Oct 2012
School
York University
Department
Administrative Studies
Course
ADMS 4562
Professor
ADMS 4562
Fall 2011
Solutions
Assignment 1
Worth: 7%
(MAX 29 marks; 30 marks available)
(Inventory; 14 marks available)
Cost of goods sold (COGs)
Purchased inventory
Opening inventory $400,000 (1
mark)
Plus purchases $900,000 (1
mark)
Less closing inventory (see below) ($282,292)
COGs $1,017,708
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2
Closing inventory (specific identification)
Lower of: Cost
From 2010* (10 units): 10 x $400,000 / 600 = $6,667 (1
mark)
From 2011 (490 units): 490 x $900,000 / 1,600 = $275,625
(1 mark)
Cost $282,292
And, FMV* (i.e., net realizable value): 500 x $575 = $287,500
(1 mark)
Closing inventory is $282,292 (1
mark)
* Can also use LCM on opening inventory, 10 units x $575 = $5,750, and get
full marks
Manufactured goods inventory
Opening inventory $200,000 (1
mark)
Plus purchases: Parts and supplies$140,000 (1 mark)
Direct labour $260,000 (1
mark)
Variable overhead $33,000 (1 mark)
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Document Summary

Worth: 7% (max 29 marks; 30 marks available) (inventory; 14 marks available) From 2010* (10 units): 10 x ,000 / 600 = From 2011 (490 units): 490 x ,000 / 1,600 = And, fmv* (i. e. , net realizable value): 500 x = * can also use lcm on opening inventory, 10 units x = ,750, and get full marks. Lower of cost: 172* units x ,000 / 300* = *must have both of these exact numbers to get these 2 marks, otherwise 0. And, fmv (i. e. , net realizable value): 172 x ,300 = A reserve of ,000 for unearned revenue/ goods that will be delivered after year-end can be claimed (1 mark) Kim will not have to include the principal amount of the loan in her income because: (1 mark) Kim got the loan due to her being an employee/ other employees can get similar loans (1 mark) Kim is a specified shareholder/specified employee, and (1 mark)

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