ACC 414 : ACC 414 Chapter 8 FULL SOLUTIONS
Document Summary
Pe gaap vs ifrs 1, 4, 11, 13. Lower of cost and nrv error effect and analysis. Calculate fifo, moving average cost perpetual and periodic. Inventory and other errors effect on ratios. Calculate fifo and weighted average cost income and ratios. Entries for lower of cost and nrv direct and allowance. Statement and note disclosure, lc&nrv, and purchase commitment. Bolts (or materials and supplies inventory) (e)direct labour: Wages paid to assembly line employees (h)honda civic ready to be shipped to the dealer (d)standby equipment (fixed asset) (f)manufacturing. Wages paid to supervisors (i)manufacturing plant (fixed asset) (c)spare parts. The response would remain unchanged under private entity gaap. Brief exercise 8-3 (continued) (b) periodic inventory system. Balance of 69 units is calculated as follows: Brief exercise 8-4 (a) invoice paid in full on july 15 (1) 3,880 (b) invoice paid on july 31 (1) Cash (discount lost on purchase of july 11, ,000, terms.