Use the Current Asset Section of the Balance Sheets of the El

question 12

Essay

Use the current asset section of the balance sheets of the El Paso Company as of January 31,2012 and 2011 presented below to answer the questions that follow.
Required:
(a)In the spaces provided below,complete a Percentage Change analysis of the current asset section of El Paso Company's balance sheet for 2012,using the following format to provide your answers for the amount of dollar change and the amount of percentage change,rounding "% Change" to one decimal place,e.g.,8.3%.
Accounts $ Change % Change
(b)Provide a short evaluation of this analysis.

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Definitions:

Cost Transferred

The movement of accumulated costs from one cost center to another in the accounting period.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Conversion Costs

The combined costs of direct labor and manufacturing overhead and conversion costs are used to transform raw materials into finished products.

Equivalent Unit

A concept in cost accounting used to apportion costs to partially completed goods, treating them as a fraction of a fully completed unit.