_fa_《financial_accounting》_习题答案7.pdf

《_fa_《financial_accounting》_习题答案7.pdf》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

1、CHAPTER7MERCHANDISEINVENTORYBRIEFEXERCISESBE7–1TheinventorypurchasesmadebyHewlett-Packardduring2003canbecalculatedasfollows:Endinginventory$6.1billion+Costofgoodssold43.7Goodsavailableforsale$49.8–Beginninginventory5.8Purchasesin2003$44.0billionBE7–2a.FromthefootnoteitisapparentthatJ

2、ohnson&Johnsonisamanufacturer.Aretaileroraservicecompanywouldnothaveaccountscalledrawmaterialsandsuppliesoragoodsinprocesswithinthedetailoftheirinventory.Theseaccountsareonlyusedbymanufacturingcompanies.b.FromthisdisclosureitappearsthatJohnson&JohnsonusestheFIFOinventorycostflowassum

3、ption.IfacompanyusesLIFOitmustdisclosetheamountoftheLIFOreserveimbeddedinthevaluationoftheinventory.BE7–3IfGeneralElectricusedtheFIFOinventorycostflowassumptioninsteadofLIFO,itsinventorybalancefor2003wouldbe$9.832billion.Thisdisclosureisusefultofinancialstatementusersbecauseitcanmake

4、iteasiertocompareGE’sresultswithacompanythatusesaFIFOassumption.ItalsotellsthereaderthefinancialstatementandtaxliabilityimpactonGEifitweretoswitchtoaFIFOassumption.EXERCISESE7–1(1)SincethegoodswereshippedFOBshippingpoint,legaltitletothegoodspassestothebuyerwhenthegoodsareshippedonDec

5、ember30,2005.SinceDallasisthebuyer,DallashaslegaltitletotheinventoryasofDecember31,2005.Further,Dallasrightfullyincludedtheitemsinitsinventory.Therewillbenomisstatementonanyofthefinancialstatements.(2)ThegoodswereshippedFOBshippingpoint,solegaltitlepassestothebuyerwhenthegoodsareship

6、pedonDecember31,2005.SinceDallasistheseller,notthebuyer,legaltitlepassedfromDallasonDecember31,2005.Dallas,wrongfullyincludedtheitemsinitsendinginventory.Thiswouldresultinanoverstatementofinventoryonthebalancesheet.Assuming1E7–1ConcludedthatDallashasproperlyrecordedthesalebutdidnotye

7、trecordtheCOGS,therewillbeanunderstatementofCOGSontheincomestatementandanoverstatementofretainedearnings.(3)SincethegoodswereshippedFOBdestination,legaltitletothegoodspassestothebuyerwhenthegoodsreachtheirdestinationonJanuary2,2006.SinceDallasistheseller,notthebuyer,Dallashaslegaltit

8、letotheinven