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During the year. Wright Company sells 535 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Jan. 1 May. 5 Nov. 3 Transaction Beginning inventory Purchase Purchase Number of Units 40 285 235 560 Unit Cost $65 68 73 Total Cost $ 2,600 19,380 17.155 $39.135 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. LIFO Cost of Goods Available for Sale Cost of Goods of units Cost per unit Available for Sale Cost of Goods Sold Cost of Goods of units Cost per unit Sold Ending Inventory Ending of units Cost per unit Inventory Beginning inventory Purchase May 5 Nov. 3 Tot During the year, Wright Company sells 520 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year. Date Jan. 1 May. 5 Nov. 3 Transaction Beginning inventory Purchase Purchase Number of Units 50 275 225 550 Unit Cost $ 67 70 75 Total Cost $ 3,350 19, 250 16,875 $39,475 Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted average cost (Round your average cost per unit to 4 decimal places.) per Unit Cost of Goods Available for Sale Cost of Goods Sold - Weighted Average Ending Inventory - Weighted Average Cost Cost Weighted Average Cont Average Cost of Goods # of units # of units Cost per # of units Average Cost Cost of Goods Available for Average Cost Ending in ending sold Sold Sale unit inventory per unit Inventory Beginning Inventory 50 $ 3.350 Purchases May 5 275 19.250 Nov 3 225 16,875 Total 550 $ 39/475 Prey 2 of 8 Next > Che Ebbers Corporation overstated its ending inventory balance by $5,000 in the current year. What impact will this error have on ending inventory and retained earnings in the current year and following year? Ignore any tax effects. Current year: Current year Ending inventory Retained earrings Following year: Following year Frinn inventory Required information [The following information applies to the questions displayed below.) A company reports inventory using the lower of cost and net realizable value (NRV). Below is information related to it year-end inventory Inventory Quantity Unit Cost Unit NRV Furniture $ 98 Electronics 180 $83 380 48 290 Required: 1. Calculate the total recorded cost of ending inventory before any adjustments. Cost of ending inventory (before adjustment) Required information [The following information applies to the questions displayed below.) A company reports inventory using the lower of cost and net realizable value (NRV), Below is information related to its year-end inventory. Inventory Furniture Electronics Quantity 180 48 Unit Cost $ 83 380 Unit NRV $ 98 290 2. Calculate ending inventory using the lower of cost and net realizable value. Inventory Quantity Lower of Cost and NRV per unit Ending Inventory Furniture Electronics c Required information {The following information applies to the questions displayed below) A company reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Quantity Unit Cost Unit NRV Furniture 180 Electronics $ 83 380 $ 98 290 48 3. Record any necessary adjustment to inventory (If no entry is required for a transaction/event, select "No Journal Entry Requ in the first account field.) View transaction ist Journal entry worksheet 1 Record the adjustment for inventory, Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020's income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company's chief financial officer (CFO) to Jim Fielding, the company controller, included the following comments: If we don't do something about the large amount of unsold computers already manufactured, our auditors will require us to record a write-down. The resulting loss for 2021 will cause a violation of our debt covenants and force the company into bankruptcy. I suggest that you ship half of our inventory to J.B. Sales, Inc. in Oklahoma City. I know the company's president, and he will accept the inventory and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost our loss to a profit. Then J.B. Sales will simply return the inventory in 2022 after the financial statements have been issued Required: 1. Understand the reporting effect: What is the effect on income before taxes of the sales transaction requested by the CFO? Increase Decrease 2. Specify the options: If Jim does not record the sales transaction requested by the CFO, what is the effect on total assets and income before taxes of the inventory write-down? Increase Decrease Next 8 of 8 O Increase Decrease 2. Specify the options: If Jim does not record the sales transaction requested by the CFO, what is the effect on total assets and income before taxes of the inventory write-down? Book Increase Decrease Print eferences 3. Identify the impact: Are investors and creditors potentially harmed by the CFO's suggestion? Yes No 4. Make a decision: Should Jim follow the CFO's suggestion? Yes NO

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