Jayden and Chloe Harper Are Husband and Wife and Use

question 146

Essay

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes.
a.​
If the Harpers file a joint return for 2015,can they later switch to separate returns for 2015?
b.If the Harpers file separate returns for 2015,can they later switch to a joint return for 2015?

Apply the concept of days in inventory to assess inventory management efficiency.

Recognize the requirements and differences in inventory accounting and reporting under GAAP and IFRS.

Analyze the impact of different inventory valuation methods on financial statements and tax implications.

Understand the principles underlying the computation of new average costs in inventory valuation.

---

Definitions:

Multiple Cost Pools

An accounting method that separates costs into different categories or pools, to more accurately assign indirect costs to products or services.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant to allocate overhead costs to products.

Cost Assignments

The process of identifying, aggregating, and allocating costs to cost objects such as products, services, or departments.

Pricing Decisions

The process of setting the sale price of a product or service, considering costs, competition, and market demand.