A Psychological History of the German Film Essay - 2

A Psychological History of the German Film - Essay Example However, in the news coverage, the objective of the film’s original authors seemed distorted. In Wiene’s version, the story is screened with Caligari more of a conformist rather than Janowitz’s and Mayer’s intention of portraying the film as a revolutionary one. Wiene’s version of the film Caligari utilizes pictorial presentation to demonstrate the fantasies of a madman. The use of pictures bonds well with the audience, who develop a clear understanding of the background and gestures used. The film is basically a blatant expression of psychological issues. Caligari depicts how the film industry has developed from ancient periods. It uses motion pictorial presentation to convey the themes covered to its audience. Caligari portrays life amidst and after the war, exhibiting the error of Hitler. The film covers the reality that the Germans had gone through during the war and the illumination of the scenes was such that it appeared soul-oriented. Caligari presents the evolution of cinema in the 19th century as new techniques emerged.

Impact of E-Commerce in Modernisation Essay Example for Free

Impact of E-Commerce in Modernisation Essay The term Electronic Commerce or E-Commerce consists of all business activities carried on with the use of electronic media that depend on the Internet, such as e-mail, instant messaging, shopping carts, Web services, UDDI (Universal Description, Discovery and Integration), FTP (File Transfer Protocol), and EDI (Electronic Data Interchange), and all forms of messaging between enterprises. E- Commerce can be between two businesses transmitting funds, goods, services and data or between a business and a customer. In simple words, E-Commerce involves buying and selling of goods and services over the World Wide Web or Internet. Customers can purchase anything right from a mobile set or a book sitting in his room by click of a mouse. Because of E-Commerce, the world stands at the edge of a new revolution. With the easing of the telecommunication sector world wide, the use of E-Commerce will increase rapidly. E- Commerce brings new opportunities for enterprises to access markets of all over world. Every service and information about the product is available just on a mouse click. The modern technology offers an opportunity to enterprises to upgrade themselves and enter the global market at the right time and at a low cost. This would work like a boon for the entrepreneurs in rural area of BTAD. E-Commerce may involve selling directly from Businesses-to-Consumers (B2C E-Commerce). For example, a number of craft producers and tourism enterprises have already found some success dealing directly with customers. E-Commerce can also be conducted directly between Businesses (B2B E-Commerce). This is by far the most common type of E-Commerce at present. There is also Business-to-Government activity (B2G E-Commerce) that refers to the growth in supply of goods and services for online government procurement – potentially a large growth area in developing countries. An Entrepreneur is a business leader who has a pivotal role in fostering economic growth. An entrepreneur can be regarded as a person who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. He is the catalyst for social change and works for the common good. They look for opportunities, identify them and seize them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake risks in order to achieve their goals. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to others. Thus entrepreneurship is the best way to fight the evil of unemployment in the BTAD area. For North-East region such as BTAD area one of the most important benefits of E-Commerce is its potential to help a developing rural areas to transform into the knowledge model region. The positive effects of E-Commerce can be adopted by the traditional entrepreneurs in BTAD area to modernise their local or native enterprises. E-Commerce can stimulate the traditional entrepreneurs of BTAD area by opening new possibilities to them and thus help to grow the economy of BTAD area. E-Commerce is as a new way of helping business enterprises of the rural areas of BTAD to compete in the market and thus contributing to economic success as well. E-Commerce involves the selling and buying of goods and services over World Wide Web i.e. Internet or others Electronic media by businesses, individuals, governments or other organisations. Customers can buy anything right from a mobile set or can book an Air ticket sitting in his room just by click of a mouse. The traditional enterprises of BTAD area can be modernise with the help of E-Commerce, which will add the flexibility and speed offered by electronic communications. This can facilitate improvement in competitiveness and efficiency through the redesign of traditional business methods. E-commerce has turned out to be the most efficient way of promoting one’s products online and also ensuring a truly global appeal for the same. Some economists’ say that the newly emerged economy can be very appropriately called as the transparent economy because the Internet makes has made it more open and exposed. In BTAD, E-Commerce is not practice by the traditional enterprises. As E-Commerce offers new opportunities, entrepreneurs of BTAD area should try to gather maximum advantage of Electronic marketing. Thus, it is high time that the traditional entrepreneurs in BTAD area should act fast and decisively in order to use the growing Internet trading to achieve advantage. The reason for concentrating on this topic is that, there is no research on E-Commerce in rural area of BTAD is conducted. 1. LITERATURE REVIEW: The purpose of this research is to investigate and analyze the impact of E-commerce in traditional enterprises of BTAD area. A review of principal and current literature on e-business and perspective of entrepreneurship was undertaken to collate the existing theories about the two and to explore the conceptual relationships between them. One of the best book for E-Commerce published in 2004, was entitled â€Å"The Complete E-Commerce Book† by Reynolds, Janice. Through his book he wanted to acquaint the readers with the various technical aspect of E-Commerce. Another book was published in 2008, was entitled â€Å"managing e-commerce† edited by Botha, J, Bothma, C, and Geldenhuys, P. They explained the impact of E-Commerce and innovation on business models. Kumar, S. Anil through his book â€Å"Small business and Entrepreneurship† in 2008 wanted to highlighted various aspects of Entrepreneurs. Likewise various articles have also been published in various journals dealing with various aspects of the E-Commerce as well as the Entrepreneurship. Further some research has also been done about the various aspects of traditional enterprises of North East including Assam. But no one has attempted so far a detailed study including almost every aspect of modernisation of traditional enterprises in BTAD area. This will be certainly a unique one. 2. OBJECTIVE OF THE STUDY: The propose study has been undertaken keeping in mind the following objectives: a) To highlight the traditional entrepreneurship in BTAD area. b) To study the impact of modernisation of Entrepreneurship in BTAD area. c) The analyses the impact of E-commerce on the entrepreneurs in BTAD area. d) To highlight the scope of new entrepreneurs in the Internet marketing in BTAD area. e) To help entrepreneur to start a new business and expand the existing one with the help of E-commerce. f) To study E-commerce and its socio-economic impact on Entrepreneurship development. 3. HYPOTHESES: The following hypotheses have been formulated to the test the objectives taken above: a) Educated unemployed in BTAD area can start their entrepreneurship with the help of E-commerce. b) Due to the influence of internet marketing the change in economic and entrepreneurship in BTAD area in terms of their traditional business system. c) Government policies on traditional entrepreneurship development are not satisfactory. d) The Business-to-Business transactions play an important role in E-commerce market of BTAD area. e) The future of E-commerce for entrepreneurs in BTAD is quite promising. 4. RESEARCH METHODOLOGY: This research paper aims to give a better understanding of the complementary nature of entrepreneurship through an empirical study of Utilities of E-Commerce in various industries in the BTAD area. In order were conducted to examine the perceptions of entrepreneurs in E-Commerce regarding entrepreneurship and the factors affecting the development and integration of entrepreneurship in the BTAD area. The main purpose of the literature review was to collate the existing theories and basic knowledge about the entrepreneurship and E-Commerce to explore the conceptual relationships between them. A review of the current literature on E-Commerce as well as entrepreneurship was conducted. In addition web research was conducted to support the literature review. The sources provided by the web research were the most convenient and the fastest due to its accessibility. The analysis of some case studies has been done to support the literature review. Case studies were undertaken to explore organizational behaviour and practice, entrepreneurship and E-Commerce in various enterprises in BTAD area. In addition to the case studies, interviews were conducted in several enterprises of BTAD area to explore the conceptual relationship between entrepreneurship and E-Commerce, and the factors affecting the development and integration of entrepreneurship. These interviews focused on how these industries in BTAD area utilizes E-Commerce, how they benefited and what lessons can be learned from the experiences. 5. CHAPTERISATIONS: The study proposes the following Chapters: a. Chapter 1. Introduction. b. Chapter 2.Review of Literature. c. Chapter 3.The Entrepreneurs in BTAD area and their problems. d. Chapter 4.Practice of E-commerce by the Entrepreneurs in BTAD area. e. Chapter 5.Analysis of the practices of E-commerce on Entrepreneurship development in BTAD area. f. Chapter 6.Findings, Suggestions and Conclusion. g. Chapter 7.Bibliography. 6. BIBLIOGRAPHY: Books: 1. Dr. Singh, A.K., 2009 : Entrepreneurship Development and Management, University Science Press, Daryaganj, New Delhi-2, 2009. 2. Botha, J. , Botham C., Geldenhuys P., 2008 : Managing E-commerce, 2nd Edition, Juta Co. Ltd., Mercury Crescent, Wetton, Cape Town, 2008. 3. Kumar S. Anil, 2008 : Small Business and Entrepreneurship, I.K. International Publishing House Pvt. Ltd., New Delhi-16, 2008. 4. Reynolds, Janice,2004 : The Complete E-commerce Book, published by CMP Books, San Francisco, USA, 2004. 5. Tiwari, Sanjay, Tiwary, Anshuja, 2007: Entrepreneurship Development in India, Sarup Sons, New Delhi-2, 2007. 6. Uddin, Sami , 1989 : Entrepreneurship Development in India, First Edition, Mittal Publications, Delhi-110035, 1989. 7. Wallance, P D,2001 : Encyclopaedia of e-commerce(Vol. II), Sarup Sons, New Delhi-2, 2001. Journals: 1. Bajaj, K.K., Country Report on E-Commerce (India, Ministry of Communications and Information Technology, Department of Information Technology, Office of the Controller of Certifying Authorities). 2. CII, 2001. E-commerce in India: How to make it happen?, Report of the CII National Committee on E-Commerce 2000-2001 (Confederation of Indian Industry). 3. Das, Sanchita, 2001. Cables in the deep, 2-15 April 2001. 4. Department of Telecommunication, India, 2001. DOT Annual Report 2000-2001. 5. E-commerce (India), October 2001. Redefining business parameters, October 2001.

The Importance of Style :: Writing Writer Style Styles Essays

The Importance of Style If there’s one thing that this class has taught me, it’s that one of the single most important aspect to consider in writing, is that of the style. Style can be defined many ways, whether it be an analysis of oneÂ’s writing proficiency and technical accuracy, or the writerÂ’s voice, and how they bring across their message to the readers. Without style, all writing becomes at least one of two things: a boring, dragging piece whose clipped pace turns the reader totally off, or it becomes so poorly written that the question of the author’s intelligence comes into play while reading the piece. While I could easily say simply that style is the most important aspect of writing, that would be far too much of an oversimplification. There are many individual pieces that make style what it is. In fact, whole books have been written solely on that subject, such as "Style Toward Clarity and Grace" by Joseph M. Williams, or "The Elements of Style" by William Strunk, Jr. and E. B. White. These texts try to pin down exactly what are the key points that make a successful style, as opposed to one not as well crafted, just as the purpose of this essay is. The first thing I think of when I try to define good styles of writing is a knack for grammar and vocabulary. These are the most important aspects of writing when it comes to getting oneÂ’s message across. Without proper grammar, confusion and misinterpretation reign supreme. Strunk and White feature an entire chapter exclusively to the practice of using the correct grammar (Strunk and White chapter 4). Williams, meanwhile feels that the rules are not necessary to dwell on ever, and breaks rules down into three ways: rules that "No native speaker of English has to think about", rules that educated writers only think about "when they see or hear them violated" and finally, rules that are apparently there for grammarians to find faults in writing, and that educated writers generally accept that these rules can be ignored (Williams 176). If nothing else, this dichotomy in policies from several sources is totally indicative of the very nature of writing itself. Writing has existed for thousands of years, and it seems like at least once a generation, the general acceptance of rules, and even which rules are applicable change dramatically.

Absenteeism 3

Chapter I THE PROBLEM AND REVIEW OF RELATED LITERATURE Background of the Study A child or student’s interest is the most basic element that makes a group learning system work in an organize way. From the head to the base members of this organization, the condition of one may affect the others. This kind of educational system is comparable to a series light connection where in the state of one greatly affects the others. Population and the percentage within that population which causes negative feedbacks can be the primary reason of a poor product. The group or classroom type of organized way of learning has given that impact to the community being the commonly used system. Its effectiveness has been proven and has never been out of fashion. The relationship between the student’s physical presence on class discussions and their learning performance are greatly relative. Class participation is just one way of measuring a child’s learning ability. In a class, the teacher-student relationship is one of the most fundamental units in student’s learning. Learning in a system of group collaboration is one of the best ways in gaining knowledge. It is a teamwork which the framework relies on an individual learning from the others and others learning from that individual. When a student misses a day of school he/she must have lost the chance to hear others, interpret and analyzing the lessons or joins the interaction within the class. This lost is being rooted to two different courses and varying factors under these courses. The inquiry might be a family situation or an individual problem. Then, under these courses are the factors that contribute to a child’s regular truancy. These may be finance concerns, disability, psychotic imbalance, poor school climate, family health, transportation problems, drug and alcohol use, and differing community attitude towards education (Savers, D. etal,2005). Absenteeism in one angle view point is one of the most common causes of degrading performances of the students. Especially to those who are included in the advance intelligence curriculum, absenteeism causes a great lose and may result to giving up an aimed position. It can also cause social repletion especially when a class is composed of a great number of students. This habit can cause a dilemma to the school administration when big figures are involve and may decrease the school’s performance. On the other hand, contamination of sickness and disease can be avoidable because of the absences of a person (Marbuger, D. , 2001) A student’s attendance may be the grounds of the results of his or her learning performance. School administration and faculty may also affect the absenteeism rate of their student, and so as the population of those who practice absenteeism affect the administration and the school itself. There are so many fruits that the root of absenteeism can produce depending to the situation of the respondent. Hence, this research will be conducted. Review of Related Literature There are a lot of factors which affect the student performances in academic areas. One of these is absenteeism. Absenteeism is defined to the students as a deliberate or habitual absence from going to school. Everybody misses a day of school activities and school lessons now and then. But it is a problem if the students will absent to many days in going to school, this will cause serious problems (http://www. enterpreneur. com/encyclopedia/term/82042. html). Absenteeism in students affects their school performances especially when they are in a group or teamwork for their assignments and projects. Since grouping will help develops the students’ cooperative and ability to share and gain knowledge from their group mates, likewise, the group mates will also miss the opportunity of gaining knowledge from the absent student (Koppenhaver, 2003). According to Schmidt in 1983, absenteeism affects the students’ ability to get high scores in examinations which can cause the decreasing of grades or the student may fail and will cause him/her to repeat the same year level. Students who have spent time attending lectures or classes have a significant, positive effect on students’ performance. Students that participated exhibited higher grades and scores in examinations that the student. Marburger states that the difficulty inferring the effect of absenteeism on erformance because, once a student is absent in a class, he or she may miss the opportunity of learning other techniques. He found out that missing in class progresses the likelihood of missing examination material covered that day compared to the students who were present in the class (2001). It indicates that persistent absentees at an inner-city school in South Wales had significantly lower self concept self-esteem, more deprived socioeconomic backgrounds, l ower intelligence level, and more educational problems to control groups. Suggest that remedial measures for absenteeism should focus on raising self-concepts and changing attitudes toward school (Reid k, 1982). Absenteeism is the most significant factor to affect the functioning of assembly lines in the development of School Administration. Those high levels of absenteeism have negative repression colleagues’ effect to the production of quality levels of well trained students because of work specialization. The analysis of hundred absentees reveals hundred of instances of negative effect of building well discipline students for the future. In contrast to the empirical evidence it confirms that absenteeism produce higher level of problems, that value specialization among student has been significant reduced in the students’ achievements (Mateo R, 1998). Students’ contracts influence teacher attendance from the classroom. The teachers’ attendance has a positive and negative effect on interested students achieve. How students absences influences their teachers’-students’ relationship. Teacher and student absenteeism affect the student test score performance base on extensive data collection effect, conducted by authors. It presents an economic analysis using data from over 700 school district in New York State 1986-1987. It includes that provisions plays a big rule like (the number of unused leave day by teacher will accumulate and â€Å"cash in† at retirement may simultaneously bathetic in teachers and student (Pitkoff, 19903). Teachers who maid and received low performance making tend to miss a larger number of days than those who did not. Teachers with marks do not feel a connection to the workplace and believe they are ineffective in the classroom. This gives an impetus for school administration to develop teachers’ growth plan early in the academic years for low performing teachers than the later in year (Pitkoff, 1993). To prevent and correct serious attendance problems, schools need to change the way they structured improves the quality of the courses and intensity interpersonal relationship between teachers and students (Epstein and Sheldon, 2002). School refusal behavior is a term synonymously used with absenteeism. Classifications of this are the following manifestation: social phobia, school phobia, anxiety and/or depression and truancy (Daleidan et. l, 1999). Of all these manifestations, truancy is one that presents a diversity of issues of interest to school personnel while the others need medical or counseling interventions (Williams, 1998) The organizational structures and culture of a school setting contributes to how students experience the system. School characteristics and culture can influence student abs enteeism (Epstein and Sheldon, 2002). Perhaps organizational school structures endorse reward particular peer groups while ignoring the others. If so, peer identity becomes relevant in schools as the values, attitudes and beliefs held within the peer groups predispose those in the group to endorse or reject the mission of schools. Haris(1996) claims that peer groups are more powerful than parents in changing the values of an individual. The teenagers class themselves out into peer groups varying in their attitudes towards intellectual achievement and can even find anti-intellectual groups in middle class neighborhoods and if this is the case, the choice of peer group could have an effect upon the academic outcome of a student thus, causing absenteeism (Hartnett, 2008). The curriculum of schools and strength of approval against the habitual absenteeism are also cited as contributing causes to the problem. It was cited by some students as a reason for non-attendance the lack of challenging and interesting course work and curriculum (Kilpatric, et. al, 1999). Students also cited that negative self-image and low self-esteem are reasons for absenteeism. The negative self-images are sometimes resulting of labeling and tracking within the school system (Lotz and Lee, 1999). According to Lotz and Lee that mostly of the adolescents today receive less supervision than in the past (1999). The contributing factors to chronic absenteeism involve parental and school-based responsibility. In many cases, parents actually condone the absence by ignoring excuses when no valid reason from school (Kilpatrick, et. al, 1996). A study presents by Unger,Morton and Laing (1997) presents the argument that students who participate in cooperative experiences, even the cause for this occurrence is not conclusive. Students who already exhibit absenteeism might be interesting to the programs that primarily caused the students to leave school thus more day of non-attendance. Students might disassociate themselves more from the school setting since they are experiencing the world of work. They may have access to their own transportation and find easier to be absent. This view regarding length of the school day, implementations of Blocks Scheduling with few and longer periods when compared to a seven period day with shorter periods appear to reduce absenteeism. Thus school systems implement the six or seven period day of a higher rate experiencing absenteeism (Khazzaka, 1997/1998). Birman and Natriello (1978) categorized in possible explanations for absenteeism into three categories. The most common were the students’ lack of adequate socialization and ignorance of appropriate behavior. The second group of explanations, the school-level group, was primarily concerned with peer pressure and school organizational patterns and their adverse effects. The authors labeled the third group societal-level explanations. These included changing social mores and community values. According to Louie F. Rodriguez and Gilberto Q. Conchas, â€Å"this case study explores how a community-based truancy prevention program mediates against absenteeism, truancy, and dropping out and positively transforms the lives of Black and Latina/Latino middle school youth. Findings suggest that community-school partnerships are critical in the quest to combat truancy and the alarming dropout rate among urban youth. This study also shows how committed individuals can work to engage and empower low-income urban youth who are disengaged from school. Extensive interviews and observations with Latina/Latino and Black youth demonstrate how the intervention program mediates against social and academic failure. Using grounded theory, this article explores four student-identified dimensions that impact his/her (re)engagement with school: (a) the importance of space that promotes peer relations, (b) incentive structures within programs, (c) the need for social networks, and (d) youth advocacy as a mechanism for institutional accountability. Implications for combating truancy, reducing dropout, and promoting student engagement are discussed. Reprinted by permission of the publisher†(2009). â€Å"A case study involving an ethnographic assessment of adult English as a second language program at a community center in southern Minnesota is outlined. Findings revealed that additional curricular structure and more effective communication between teachers and students regarding content and outcomes were keys to reducing absenteeism and those more attentive, respectful estimations of students' abilities would ensure effective communication and help students develop a sense of ownership in their learning† according to the study of Susan L. Schalge and Kay Soga (2008). According to the study of Dube, Shanta R and Orpinas, Pamela, they investigated the negative and positive behavioral reinforcement profiles of behavior related to excessive absenteeism. â€Å"Negative reinforcement involves avoidance, and positive reinforcement involves gaining parental attention or getting tangible benefits from not attending. Data on school refusal behavior were obtained from 99 upper-elementary and middle school students referred for attendance problems. Three profiles were identified: 17. 2 percent of participants attributed absenteeism to both positive and negative reinforcement; 60. percent attributed absenteeism only to positive reinforcement; and 22. 2 percent had no profile. Findings revealed that the three groups differed considerably in mean scores for behavioral difficulties: participants from the multiple profile groups had the highest level of behavioral problems, while participants from the no-profile group had the lowest. †(2009). The British J ournal of Educational Psychology states â€Å"lack of adjustment or school failure is a concern to educators, educational and school psychologists as well as parents, but few studies have focused on school adjustment during late adolescence. Moreover, studies have yet to explore associations between parenting and school adjustment among upper secondary school students. Aim the primary objective of this study is to explore the relative and unique influence of parental support, behavioral control and psychological control (overprotection and autonomy granting) in school adjustment among upper secondary school students. The sample consisted of 564 students (15-18 years of age) in vocational and general educational courses from one upper secondary school in western Norway. The results showed that perceived parental practices accounted for moderate, but statistically significant amounts of variance in different aspects of school adjustment. The findings indicate that perceived parental socialization practices are only moderately associated with school adjustment among upper secondary school students. This probably reflects the fact that the influence of specific parenting practices declines as children and young adolescents mature into late adolescent students†(2009). The study of M. Scott Norton about the ABSENTEEISM AND STUDENT ACHIEVEMENT in the year of 2009 â€Å"the rate of teacher absenteeism has been found to be highest in elementary schools, schools with lower student achievement, schools composed of economically disadvantaged and minority students, and schools that do not require teachers to speak to their immediate supervisor about pending absence, urban school districts †¦ and districts with enrollments in excess of 257,000. (Pitkoff, p. 39). In schools where students are poorest and failing the most academically, teachers tend to be absent more often. In one study, the percentage of students reading below grade level was found to be the greatest predictor of school employee absenteeism, followed by the percentage of students eligible to receive free lunch (Pitkoff, 1993). Studies relating the direct effects of teacher absenteeism on student achievement are limited and tend to differ in their findings. For example, in a study that focused on fourth-grade reading results, it was determined that teacher absenteeism adversely affected student achievement (Summers & Raivetz, 1982). O'Brien and others (1982) also found negative impacts of teacher absenteeism on student learning. Yet, Ziomek and Schoenberger (1983) were unable to establish such an association. Studies by Madden and others (1991) and by Ehrenberg and others (1991) also did not support the contention that student academic performance was associated with teacher absence. In view of Pitkoff's (1993) finding that school employees rated as unsatisfatory tend to be absent significantly more days than those rated satisfactory, a reasonable conclusion might be that the absence of a â€Å"poor† teacher does not impact negatively on student learning†. Theoretical and Conceptual Framework The student body is the greatest contributor to the success or the ground falling of the school. An individual who have habitually made absences in class may have lost the chance of learning. He or she might have less chances of getting an aimed position. The school who plays an important role to a child’s motivation has known the impact of absenteeism to a student and to the school performance it’s self. The chronic spread of absenteeism may have roots that affect the attendance of an individual. â€Å"A constant doing may lead to a constant result, just like Domino† (Asia Child Data Trend, 2008). Coping up is never easy, especially when there is a lot of work to be done. Some teacher’s are also considerate that slows down the run of class discussion. Absenteeism alone when a large part of the school population is involved may not only cause a problem to the school but also to the local administration (Williams, L. , 2001). The performances being recorded at the diagnostic tests or midterm exams for example will determine the schools performance. And when absences are done, it can pull down even the highest scores. That is why the results of absenteeism are to be identified as so the solutions can be formulated to materialize the aims of the school and the individuals. Figure 1. The Schematic Diagram of the Study Statement of the Problem The study aims to identify the most common effect of absenteeism to a student and the whole body as how the student and teachers specify each. Specifically, the study seeks to answer the following questions: 1. What is the profile of the teacher and student respondent in terms of: a. Gender b. Age c. Civil status 2. What are the common causes of absences done by the students in terms of: a. Self-Inquiry b. Family Problem 3. What are the effects of absenteeism as grouped according to: a. Students Learning Performance b. School Performance 4. Is there a significant Difference between the perception of the students and teachers on the effect of absenteeism in terms of students learning and school performance? Hypothesis Ho: There is no significant difference between the perception of the students and teachers on the effect of absenteeism in terms of students learning and school performance. Ha: There is a significant difference between the perception of the students and teachers on the effect of absenteeism in terms of students learning and school Significance of the Study In many ways, whether in a tiny scale or in a wide range scale the findings of this research will benefit the following individuals in their own respective fields: The Student. Once an individual will know the impact of his doings, he or she will find ways and means to lessen the damage done. It will let this individual know the scope of his abilities and the right way of directing things especially when he would realize the effect of his habitual absences to the school body. To those students who do not have the knowledge on this aspect, they will be given chance to think, and may join the population which influences the declining of absences ratio. The Teachers. The teachers who serve as the parent when a child is in school will be able to formulate ideas on how to reduce the number of students who skip classes or who habitually commit to absences. They will be the keys of motivation and inspiration of their students. The School Administrator. Knowing the effects of absenteeism to a student, the school administration is the one primarily affected. Their concerns can then be discussed with the student body and so as the student body sharing their troubles to the administration. Through a conference the administration might be able to arrive to solutions which can be applicable o different situations. The DepEd Authorities. The Department of Education main goal is to be able to produce productive citizens of the community. Absenteeism is one of the factors that disturb the stableness of this goal. When the results are evident, the DepEd authorities together with the different school administration may arrive to a step by step planning to kill the rodents of absenteeism. The Parent. The parents are the direct and the baseline in communication in relation to their child’s regular truancy. Knowing the impact of absenteeism to their child’s learning performance, a parent will be at the concerns of convincing their child to attend school and protect them from the primary causes of their absences. Scope and Limitations of the Study The study focuses mainly to the effects of absenteeism to a student’s learning performance and the schools performance as signified by the teachers and students. The respondents are students from Agusan National High school, Third Year Science High Curriculum and the respective teacher’s who still belongs to this scope. This will determine the impacts of absenteeism into an individual and the body where he or she belongs and to arrive to simple solutions on this eye visible dame. The personal information needed for the study is Gender, Age, and cause of absences such as self-inquiry and family problem. The effects of absenteeism o student’s learning and school performances are enumerated in determining the answers of the respondents. Definition of Terms: Absenteeism. The regular truancy of a child; The habit of having absences. Family problem. The problems of the family that greatly affects a student’s attendance to school. This includes financial support (the family can’t afford education or education is not a primary necessity), differing community attitudes towards education (The people that surrounds home and within it education is not given importance), transportation (The family might lived in a very rural community where in transportation cannot easily reach Individual learning performance. The variation on the learning of a student being monitored in different ways e. g. class interaction, test results) Science High School Students. The students belonging to a special curriculum on higher education. Taught advance learning in science and mathematics Self Inquiry. The problems of an individual or a student that affects his attendance to school. Specifically social phobia (don’t have friends), health (always sick), school culture shock (have a hard time coping up, might be that the school is too advance or too slow. , influences from outside the school gates (sees people who cuts classes, Internet and Computer games. ), Chapter 2 METHODOLOGY Research Design The use of survey approach, in particular the utilization of descriptive method was observed in this research study. The use of the certain approach was to that it corresponds to the main objective of this research that is to determine the effect of absenteeism to school and ind ividual learning performances among third year Science High students of Agusan National High School as a basis for a conference dialogue. A survey questionnaire will be istributed that has four sets of questions to be answered by the students and teachers. The quantitative research techniques using Likert scale was used to rate the individual and school performance due to absenteeism. And also frequency test for the cause of it whether it is self inquiry or a family problem. Research Locale There are several High schools in Butuan City where the primary respondents of this research came from, Agusan National High School in fact is the largest high school and also has the biggest population found in this community, therefore it was chosen for the reality that it can determine the impact of absenteeism. The school grounds of this said school is found in A. D. Curato St. corner Noli Me Tangere St. Butuan City, Philippines. And as shown in the map below of Butuan is Area 52(Piepenbrock G. ,2009). The respondents of this study came from Agusan National High School, specifically those who belong to the special curriculum of the Science High School. Briefly this curriculum was established in 1994 by the administrators of the Department of Education Butuan Chapter. The students of the said curriculum are chosen especially to undergo advance learning and the teachers are also given same importance since it was built. The third year students and their teachers in different subject areas will be the respondents of this study Agusan National High School (ANHS) is one of the leading public high school in Butuan City, Philippines. It caters the educational needs of most of the population in the community. The school has produced competent graduates and many of them hold key positions in the community. [pic] Figure 2. The map of Butuan City showing area 52 as Agusan National High school The school is strategically located at the heart of the city. It accommodates almost ten thousand students. It has the biggest population in the whole region Caraga. It is manned by 270 strong and competent teachers from different fields of specialization under the supervision of the Secondary School Principal IV. The students are trained in order for them to face the future. A graduate of this school is expected to be upright in all the aspects in life. Most of all, students are trained in order to live independent life ahead and become a globally competent Filipino. Research Instrument The instruments used in the study are the following: 1. Questionnaire Form. This instrument was structured by the researchers to set up the socio-demographic profile of the student and teacher respondents. The said instrument will be used to determine the gender and age of the respondents. The evidences on the effects of absenteeism to school and individual performances and also its causes whether it would be a self inquiry or family problem were also listed in different sets. 2. Survey Questionnaire for Students and Teachers. This instrument will be used to determine the performances of the student who has frequent absences to his classes and his contribution to school performance. Data Gathering Procedure There will be 14 teachers and 89 students who will serve as the respondents of the study. They will be answering the questions on the survey questionnaire organized and distributed by the researchers. They will be the one to determine the performances of the students who engaged to habitual absences, and its cause. They will be also asked on how this absenteeism affects the school performance. When the task is duly accomplished and the questionnaires were retrieved, processed, tabulated. It will be submitted to the analysis of data. Sampling Techniques The research study made use of the purposive sampling technique. There were 36 students and 14 teachers asked to rate the students learning and school performance. Table 1. Student Population and Respondents of the Study |Sections |Population |Sample | |(Third Year Science High) | | | | |Male |Female |Total |Male |Female |Total | |III-Avogadro |9 |29 |38 |4 |5 |9 | |III-Curie |8 |26 |34 |4 |5 |9 | |III-Dalton |10 |31 |41 |4 |5 |9 | |III-Lavosier |12 |24 |36 |4 |5 |9 | |Total |39 |110 |149 |16 |20 |36 | Table 2. Teacher Population and Respondents of the Study Section |Population |Sample | |(Third Year Science High) | | | | |Male |Female |Total |Male |Female |Total | |III-Avogadro |5 |10 |15 |2 |7 |9 | |III-Curie | | | | | |III-Dalton |1 |2 |3 |0 |1 |1 | |III-Lavosier |4 |2 |6 |3 |1 |4 | |Total |10 |14 |24 |5 |9 |14 | Note: Some teachers handle the same subject in some sections and were not accounted twice. Data Analysis The researchers will hand the survey questionnaires in a manner of strict and proper distribution. The gathered data would undergo careful evaluation and analysis. For the Socio demographic profile, the researchers will make use of corresponding numerical value to present the data as follows: I. Socio Demographic Profile A. Gender Numer ical Value |Gender | |1 |Male | |2 |Female | B. Age (Student Respondent) |Numerical Value |AGE | |1 |13-16 YRS. OLD | |2 |17-20 YRS. OLD | |3 |21-24 YRS. OLD | C. Age (Teacher Respondent) Numerical Value |AGE | |1 |20-29 YRS. OLD | |2 |30-39 YRS. OLD | |3 |40-49 YRS. OLD | |4 |50-59 YRS. OLD | |5 |60-69 YRS. OLD | Civil Status for Teacher Numerical Value |Civil Status | |1 |Single | |2 |Married | |3 |Separated | |4 |Widow | The Likert scale with 5 point rating is used to describe the performance of the students as based in their regular truancy within the given 15 fields and points of learning. The said scale will also be used to determine the effect of absenteeism on the school as how its performance is being described by the respondents. II. Likert Scale |Descriptive Rating |Weight |Scale Interval | |Excellent |5 |4. 50-5. 0 | |Very Good |4 |3. 50-4. 49 | |Good |3 |2. 50-3. 46 | |Fair |2 |1. 50-2. 49 | |Poor |1 |1. 00-1. 49 | Statistical Treatment The following statistics will be used for the data analysis: 1. Mean – The mean is used to determine the general description of the effect of absenteeism to the performances of a student’s learning and school. The mean will ascertain the fields greatly affected by absenteeism as perceived by the student and the teachers. 2. Chi-square (Test of Independence)- The Chi-square test of independence was used as a treatment to this study to verify, if any, a significant difference between the perception of the teachers and students on the effect of absenteeism in terms of students learning and school performance. 3. Frequency – The frequency is used to determine the more frequent occurring rate in the different indicators. This will then identify the performing levels of the different indicators on the effect of absenteeism on student learning and school performance. 4. Standard Deviation – The standard deviation is the statistical measure that sheds light on historical volatility of the study which can give a c0omprehensive verbal description to the indicators or factors of the research study. Chapter III ANALYSIS AND RESULTS In this chapter the researchers showed the results and discussions on the results of the study. Specifically it presents the organization on the problem stated in the first chapter. Problem 1. What is the profile of the teacher and student respondent in terms of: Gender, Age, Civil status? Table 3. Respondents According to Gender GENDER |STUDENT |TEACHER | | |FREQUENCY |PERCENTAGE |FREQUENCY |PERCENTAGE | |MALE |16 |44% |5 |36% | |FEMALE |20 |56% |9 |64% | |TOTAL |36 |100% |14 |100% | As shown in Table 3 majority of the student respondents are female which is composed of 2 0 individuals or the 56% of the100%. The table also shows the greater number of females of the teacher respondents which totaled 9 or 64% of the 100%. In further discussions the population of both students and teachers are composed of more female respondents with a fraction corresponding to males number of respondents. Table 4. Student Respondents According to Age |AGE |FREQUENCY |PERCENTAGE | |13-16 YRS. OLD |36 |100% | |17-20 YRS. OLD |0 |0% | |21-24 YRS. OLD |0 |0% | |TOTAL |36 |100% | Table 4 shows that all of the student respondents which is 36 in number belonged to the age bracket of 13-16 years old. This is then interpreted that 100% of the students belong to the Third year of High school that corresponds to the scope of the study. Table 5. Teacher Respondents According to Age |AGE |FREQUENCY |PERCENTAGE | |20-29 YRS. OLD |1 |7% | |30-39 YRS. OLD |5 |36% | |40-49 YRS. OLD |2 |14% | |50-59 YRS. OLD |5 |36% | |60-69 YRS. OLD |1 |7% | |TOTAL |14 |100% | In Table 5 the data shows that most of the teachers belonged to the 30-39 years old bracket and 50-59 years old age bracket. In the following classification, each have 5 respondents or each had 36% of the total population as the research was being conducted. Table 6. Teacher Respondents According to Civil Status CIVIL STATUS |FREQUENCY |PERCENTAGE | |SINGLE |3 |21% | |MARRIED |11 |79% | |SEPARATED |0 |0% | |WIDOW |0 |0% | |TOTAL |14 |100% | As being shown in the table above, most of the teacher respondents were married at a population of 11 out of 14 or 79% of the total 100%. The rest of the respondents were classified single which is 3 in number or 21% of the total. Problem 2. What are the common causes of absences done by the students in terms of: Self-Inquiry or Family Problem? Table 7. Primary Cause of a Student’s Truancy as Perceived by the Students and Teachers |CAUSE |STUDENT |TEACHER | | |FREQUENCY |PRRCENTAGE |FREQUENCY |PERCENTAGE | |SELF INQUIRY |21 |58% |6 |43% | |FAMILY PROBLEM |15 |42% |8 |57% | |TOTAL |36 |100% |14 |100% | Self- inquiry is the main reason for a student to make an absence as what is being taken notice by other students that is being certified by Table 7. The resulting calculation shows that 21 students agreed to the fact to the said hindrance or the 58% out of the 100%. The teacher respondents look at the situation in a different angle, and most have agreed that family problem have caused the truancy of their students. Out of 14 respondents, 8 sees that the lack of family support had pushed absenteeism to what it is now. Statistically these 8 respondents compose the 57% of the total 100% population of teacher respondents. According to Williams, the student’s decision on a school based problem will not be taken responsibility by the school or the family. His regular absences will take a part on what he learns and because of some conditions, like social phobia or unsustainable community practice he will have the reason to quit school. Another claim from Haris was to be given attention for as far as his research had shared; he claimed that peer groups are more powerful influences in changing an individual than thy very own parents. And influences like this especially the not so good ones must have been provoking such individual in skipping school. But his research also discussed that there are times that the condition of oneself must be a priority. Sickness can be a factor to a self-inquired reason on absenteeism that must address an urgent action. Furthermore this citation agrees to the side of the student respondents that self-inquiry is a justified reason and adequate enough to be a basis of absences. Other authors, like Hartnett have seen another breakthrough to similar studies such as this. He have witnessed some occasions where in the family itself cannot provide a good education for its younger members. The lack of enthusiasm in some communities towards education has also influenced the attitude of a certain group of people towards educational link, thus absenteeism was observed. This is true to what the teacher respondents have observed in their school. Problem 3. What are the effects of absenteeism as grouped according to: Students Learning and School Performance? Table 8. Effect of Absenteeism to Students Learning Performance as Perceived by Student and Teacher Respondents |Indicators |Student |Teacher | | |Mean |VD | | |Mean | | |Student |Teacher | | |X2c | | | |Student |Teacher | | |Student |2132 |1314 |3446 | |Teachers |1514 |696 |2210 | |TOTAL |3646 |2010 |5656 | 1. ) df = (r-1)(c-1) = (2-1)(2-1) = (1)(1) = 1 Level of Significance = 5% X2t = 3. 84 Expected value: Cell 1:EV = [(VT)(HT)]/ GT = [(3646)(3446)]/ 5656 = (12564116)/ 5656 = 2221. 38 Cell 2:EV = [(VT)(HT)]/ GT = [(2010)(3446)]/5656 = (6926460) = 1224. 62 Cell 3:EV = [(VT)(HT)]/ GT = [(3646)(2210)]/5656 = (8057660)/5656 = 1424. 62 Cell 4:EV = [(VT)(HT)]/ GT = [(2010)(2210)]/5656 = (4442100)/5656 = 785. 38 |Cell |O |E |(|O-E|-0. 5)2 |(|O-E|-0. 5)2 /E | |1 |2132 |2221. 38 |7899. 65 |1. 40 | |2 |1314 |1224. 62 |7899. 65 |1. 0 | |3 |1514 |1424. 62 |7899. 65 |1. 40 | |4 |696 |785. 38 |7899. 65 |1. 40 | | |N= 5656 |N= 5656 | |5. 6 | CONCLUSION: | X2C | | X2t | | 5. 6 | | 3. 84 | 5. 6 ; 3. 84 Reject Ho, Accept Ha There is a significant difference between the perception of the students and teachers on the effect of absenteeism in terms of students learning and school CURRICULUM VITAE I. Personal BACKGROUND Name: April Jobeth G. Barrot Age: 15 yrs. old City Address: 241 P-1 Obrero, Butuan City Provincial Address: Agusan Del Norte Date of Birth: April 9, 1994 Height: 150 cm Weight: 37 kg Civil Status: Single Religion: Roman Catholic Citizenship: Filipino Contact#: 2257130/09102442074 Fathers Name: Job R. Barrot Age 49 yrs. old Occupation: Seaman Mothers Name: Elizabeth G. Barrot Age: 46 yrs. old Occupation: Pharmacist Brothers Name: Jeb G. BarrotAge: 17 yrs. old Steven Ellie G. BarrotAge: 1 yr. old Frankie Job G. Barrot Age: 1 yr. old Sisters Name: Jobelle Beth G. BarrotAge: 8 yrs. old II. Educational Background Preschool – Child Learning Development School – S. Y. : 1999-2001 Primary Level – Butuan Central Elementary School – S. Y. : 2001-2007 Secondary Level – Agusan National High School – S. Y. : 2007-Present III. Honors, Scholarship and Awards Preschool Kinder I Honors: Best in Math, Best in Filipino, and Best in English Award: Most Neat Kinder II Honors: Best in Math, Best in Science, Best in English, Best in Filipino Award: Most Neat Primary Level Grade 1 Honors: 8th Honors Award: Most Patients Grade 2 Honors: 6th Honors Award: Most Neat Grade 3 Honors: 9th Honors Award: Most Neat Grade 4 Honors: 14th Honors Award: Most Clean Grade 5 Honors: 8th Honors Awards: Dancer of the Year and Most Cooperative Grade 6 Honors: 6th Honors Awards: Most Industrious, 1st in Katutubong Sayaw, Cheer dance Competition (Champion), Outstanding Pupil Government Officers, Outstanding Choir Member and Outstanding Dance Troupe Members Secondary Level 1st Year Level Honor: 9th Honors 2nd Year Level Honor: 5th Honors IV. Seminar, Conference Attended Philippine Society of Youth Science Club, September 6-7, 2008, Agusan National High School Senior/Cadet Scouts Conference, August 15, 2009, at GSP Headquarters, Capitol Site, Butuan City Chief Girl Scout Medal Scheme Orientation and Workshop at GSP Headquarters, Capitol Site, Butuan City, July 25, 2009 Brown Raise Seminar, Saint Joseph Institute and Technology, February 6, 2009 CURRICULUM VITAE I. Personal BACKGROUND Name: Raniana Cabonce Valencia Age: 15 yrs. old Provincial Address: Agusan Del Norte Date of Birth: July 3, 1994 Height: 145 cm Weight: 35 kg Civil Status: Single Religion: Roman Catholic Citizenship: Filipino Fathers Name: Robert G. Valencia Occupation:Poultry Raiser Mothers Name: Rosario C. Valencia Occupation: High School Teacher II. EducationAL bACKGROUND Primary Level – Butuan Central Elementary School – S. Y. : 2001-2007 Secondary Level – Agusan National High School – S. Y. : 2007-Present III. Honors, Scholarship and Awards Preschool 2nd Honors Outstanding Pupil Best in Writing Best in Math 2nd Place Spelling Bee Primary Level Grade 1 Honors: 9th Honors Grade 2 Honors: 6th Honors Grade 3 Honors: 4th Honors Grade 4 Honors: 6th Honors Grade 5 Honors: 3rd Honors Award: 1st Place Filipino Quiz Bee Grade 6 Honors: 2nd Honorable Mention Awards: 3rd Place in Napkin Folding -5th Place Investigatory Project -6th Place Editorial Cartooning – Outstanding Choir Member Secondary Level 1st Year Level Honor: 1st Honors Award: APEC 2008 Academy Award First Place – 3rd Place Essay Writing 2nd Year Level Honor: 10th Honors IV. Seminar, Conference Attended Philippine Society of Youth Science Club, September 6-7, 2008, Agusan National High School School Press Conference, Butuan Central Elem. School, Butuan City, S. Y. 2007-2008 Symposiums, Agusan National High School, Butuan City, S. Y. 2008-2009 Red Cross Youth Seminar, Agusan National High School, February 13, 2009 School Disaster Management: First Aid Training, Ausan National High School, September 11-12, 2009 CURRICULUM VITAE I. Personal BACKGROUND Name: Gea Anne I. Makinano Age: 15 yrs. old City Address: P-6 Brgy. 16, Ong Yu, Butuan City Provincial Address: Agusan Del Norte Date of Birth: October 12, 1994 Height: 151 cm Weight: 39 kg Civil Status: Single Religion: Roman Catholic Citizenship: Filipino Fathers Name: Felixberto L. Makinano Occupation: deceased Mothers Name: Elvira I. Makinano Occupation: OFW II. EducationAL BACKGROUND Preschool –Balay Silonganan Learning Center – S. Y. : 1999-2001 Primary Level – Butuan Central Elementary School – S. Y. : 2001-2007 Secondary Level – Agusan National High School – S. Y. : 2007-Present III. Honors, Scholarship and Awards Preschool Kinder II Honors: Salutatorian Awards: Best in Writing, Most Neat and Clean Primary Level Grade 1 Honors: 1st Honors Award: Best in Writing, Most Punctual, Most Neat and Clean, Best in Science Grade 2 Honors: 4th Honors Award: Most Polite Grade 3 Honors: 4th Honors Award: Most Neat and Clean, Most Polite Grade 4 Honors: 2nd Honors Award: Most Polite, 1st Place Science Quiz Bee District Level, 3rd Place Science Quiz Bee Division Level Grade 5 Honors: 2nd Honors Awards: Participant- Water District Quiz Bee District Level Grade 6 Honors: Salutatorian Awards: Outstanding Award, 1st Place MTAP Division Level (Team), 3rd Place MTAP Division Level Secondary Level 1st Year Level Honor: 6th Honors Award: Model Student 2nd Year Level Honor: 14th Honors IV. Seminar, Conference Attended Philippine Society of Youth Science Club, September 6-7, 2008, Agusan National High School Brown Raise Seminar, Saint Joseph Institute and Technology, February 6, 009 Symposiums, Agusan National High School, Butuan City, S. Y. 2008-2009 CURRICULUM VITAE I. Personal BACKGROUND Name:Charissa L. Abingosa Age: 15 yrs. old City Address: Employees Village, Libertad Provincial Address: Agusan Del Norte Date of Birth: April 4, 1994 Height: 164 cm Weight: 52. 5 kg Civil Status: Sing le Religion: Roman Catholic Citizenship: Filipino Fathers Name: Manuel Q. Abingosa Age 47 yrs. old Occupation: Motor Cycle Driver Mothers Name: Nerlita L. Abingosa Age: 46 yrs. old Occupation: Government Employee Brothers Name: Emmanuel L. Abingosa Age: 14 yrs. old II. EducationAL BACKGROUND Preschool –Sacred Heart– S. Y. : 1999-2001 Primary Level – Butuan Central Elementary School – S. Y. : 2001-2007 Secondary Level – Agusan National High School – S. Y. : 2007-Present III. Honors, Scholarship and Awards Primary Level Grade 1 Honors: 6th Honors Grade 2 Honors: 1st Honors Grade 3 Honors: 14th Honors Grade 4 Honors: 8th Honors Grade 5 Honors: 8th Honors Grade 6 Honors: 3rd Honors Secondary Level 1st Year Level Honor: 5th Honors 2nd Year Level Honor: 21st Honors Awards: 1st place in Division and District 2nd Year Level Suduko 2nd Place in 1st Regional Math Festival IV. Seminar, Conference Attended Philippine Society of Youth Science Club, September 6-7, 2008, Agusan National High School Senior/Cadet Scouts Conference, August 15, 2009, at GSP Headquarters, Capitol Site, Butuan City Chief Girl Scout Medal Scheme Orientation and Workshop at GSP Headquarters, Capitol Site, Butuan City, July 25, 2009 Brown Raise Seminar, Saint Joseph Institute and Technology, February 6, 2009 CURRICULUM VITAE I. Personal BACKGROUND Name: Gonzaga, Mhizelie Jave F. Age: 15 yrs. old Address: P-10 Ong Yiu Dist. Butuan City Birth date:February 21, 1994 Gender: Female Status: Single Parents Information: Mothers Name: Ma. Jovelin V. Forrosuelo Occupation: Public School Teacher Fathers Name: Jose Bayani L. Gonzaga Occupation: Owner Type Jeepney Driver No. of Siblings: 1 Position in Family: Eldest II. EducationAL BACKGROUND Schools Attended: Preschool: Angelicum Montessori School; S. Y. 1998-2000 Elementary:Butuan City SPED Center FL; S. Y. 2001-2006 High School: Agusan national High School; S. Y 2007- present III. Honor Scholarships and Awards Preschool: Graduated as a Salutatorian Awards: Proficiency in Science Best in Oral Expression (Filipino) Best in Writing Best in Reading Best in Spelling Most Neat and Clean Best in Music and Rhythm Elementary: Graduated as a Salutatorian Awards: S. Y. 2006-2007 1st Place Regional Quiz Bee, SPED Schools Category 3rd Place, Regional Science Quiz Bee, Over All 1st Placer Division Science Quiz Bee nd Placer Division Science Fair â€Å"Comparing Metal Elements Found in Leaves of Different Mango Varieties† 3rd Honors, Division MTAP Math Challenge, Individual Category 3rd Runner up, Division MTAP Math Challenge, Team Competition Qualifier, Philippine Science High School Scholarship Exam, Davao Campus Contributor, â€Å"Ang Manaol† O fficial School Paper of BCSC (Filipino) Active Girl Scout Red Cross Member Class Auditor Best in Science Most Diligent Academic Excellence Awardee, Green Bank CARAGA Chapter Academic Excellence Awardee, M. Lurielle, Butauan City Branch S. Y. 2005-2006 3rd Honors, Division MTAP Math Challenge, Individual Category 1st Placer, Division MTAP Math Challenge, Team category S. Y. 2004-2005 2nd Placer, Regional Science Quiz Bee, Over All S. Y. 2003-2004 1st Placer, Division MTAP Math Challenge, Team category S. Y. 2002-2003 1st Placer, Division MTAP Math Challenge, Team Category High School: Awards: S. Y. 2007-2008 1st Placer, Division Science Quiz Bee st Placer, Division MTAP Math Challenge, Team Category S. Y. 2008-2009 3rd Placer, Schools Science Fair, â€Å"Copper and Tin Alloy As Substitute to Silicon in Photovoltaic Cell† 3rd Placer, Regional Science Fair, â€Å"Copper and Tin Alloy as substitute to Silicon in Photovoltaic Cell† IV. Seminar, Conference Attended Philippin e Society of Youth Science Club, September 6-7, 2008, Agusan National High School Brown Raise Seminar, Saint Joseph Institute and Technology, February 6, 2009 CURRICULUM VITAE I. Personal BACKGROUND Name: Ben Jay Felizarta Age: 15 years old Address: New Asia R. Calo, Butuan City B-day: July 9, 1994 Mother’s Name: Rosanna Felizarta Occupation: House Keeper Father’s Name: Bilarmino Ocay Occupation: Tailor II. EducationAL BACKGROUND Pre-School: Honor Received-1st Honor Primary Level: Obrero Elementary School Honor Received- Gr. 1 – 1st Honor Gr. 2 – 1st Honor Gr. 3 – 2nd Honor Gr. 4 – 1st Honor Gr. 5 – 2nd Honor Gr. 6 – 1st Honorable Mention Secondary Level: Agusan National High School Honor Received- None so far ———————– The effect of absenteeism to student’s learning and class/school performance. Conduct a Conference Dialogue Socio-Demographic profile of the respondent: †¢ Gender †¢ Age †¢ Civil status Common cause of absence †¢ Self inquiry †¢ Family problem †¢ AGUSAN RIVER AGUSAN RIVER

Paul’s Case

In Willa Cather’s story â€Å"Paul’s Case,† the main character Paul is a troubled young man, who is seeking an escape from reality. Paul’s way of escaping his troubled life is through a day dream. For the most part Paul’s safe place is in New York City. That is until Paul’s father comes looking for him. This is when Paul’s reality then takes form in his imaginary world. If Paul uses an imaginary escape world to get away from his troubled life, then why does it include him committing suicide? I have one reason to explain his suicide. Before, Paul supposedly enters his imaginary world, the story leaves off with Paul sitting in the cellar of his house. At this point in time, Paul starts to wonder if his father heard him entering. In the darkness of the cellar, Paul fears that his father may think Paul is a burglar, and shot him. (pg. 127) The though of death and Paul’s senseless running from a troubled life collide. In result creating Paul’s suicide, when his father comes looking for him. I believe Paul’s suicide serves as an epiphany. Paul’s epiphany relates to his struggling life, and how he has more to live for than just music. As a result of Paul’s epiphany, he begins to fade back into reality. As the audience, you are lead to believe that Paul was dreaming the whole time. The last sentence in the story â€Å"Paul dropped back into the immense design of things,† confirms the audience’s beliefs. (pg.133) Therefore I find it hard to believe that Paul ever actually traveled to New York. Due impart that Paul was a middle class kid from Pittsburg. Paul absolutely resented his lower and middle class upbringing. His resentment of his upbringing leads him to believe that New York is where the upper class lived. I find it hard to believe that he actually went to New York, because most of New York is slums. I find it hardly plausible or even possible that Paul actually lived most of the story, but rather that he imagined it all. The first problem that comes to mind when believing the story is the fact that Paul was able to get away with smoking cigarettes and drinking wine publicly. Paul was but a teenager with large sums of cash. How is it that Paul was able to live such a luxurious life for as long as he did, without being questioned about anything? The story â€Å"Paul’s Case,† was all about Paul seeking freedom from his personal life. Even though Paul was able to find some peace of mind, somehow his personal problems follow him into is dream land. Throughout Paul’s dream he encounters situations very similar to the ones he’s running from in reality. Nonetheless Paul can not escape his reality.

Intermediate Accounting Ch 8 Essays

Intermediate Accounting Ch 8 Essays Intermediate Accounting Ch 8 Paper Intermediate Accounting Ch 8 Paper CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Inventory accounts; determining quantities, costs, and items to be included in inventory; the inventory equation; balance sheet disclosure. Perpetual vs. periodic. Recording of discounts. Inventory errors. Flow assumptions. 10, 11 7 12, 13, 16, 18, 20 4 5, 6, 7 Questions 1, 2, 3, 4, 5, 6, 8, 9 Brief Exercises 1, 3 Exercises 1, 2, 3, 4, 5, 6, 10 Problems 1, 2, 3 Concepts for Analysis 1, 2, 3, 5, 11 2. 3. 4. 5. 2 , 13, 14, 17 7, 8 2, 3, 4, 5, 10, 11, 12 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 18 4, 5, 6 3 2 1, 4, 5, 6, 7 5, 6, 7, 8 4 6. 7. Inventory accounting changes. Dollar-value LIFO methods. 14, 15, 17, 18, 19 8, 9 7 1, 8, 9, 10, 11 6, 7, 10 8, 9 23, 24, 25, 26 8-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Identify major classifications of inventory. Distinguish between perpetual and periodic inventory systems. Identify the effects of inventory errors on the financial statements. Understand the items to include as inventory cost. Describe and compare the cost flow assumptions used to account for inventories. Explain the significance and use of a LIFO reserve. Understand the effect of LIFO liquidations. Explain the dollar-value LIFO method. Identify the major advantages and disadvantages of LIFO. Understand why companies select given inventory methods. 8, 9 22, 23, 24, 25, 26 1, 8, 9, 10, 11 Brief Exercises 1 2 4 1, 3 5, 6, 7 4, 9, 13, 16, 17, 18, 20 5, 10, 11, 12 1, 2, 3, 4, 5, 6, 7, 8 13, 14, 15, 16, 17, 18, 19, 20, 22 21 1, 2, 3 1, 4, 5, 6, 7 4, 5, 6 Exercises Problems 6. 7. 8. . 10. 8-2 ASSIGNMENT CHARACTERISTICS TABLE Level of Difficulty Moderate Moderate Simple Simple Moderate Simple Simple Simple Moderate Simple Simple Moderate Moderate Moderate Moderate Moderate Simple Simple Moderate Simple Moderate Moderate Simple Simple Moderate Moderate Moderate Moderate Simple Complex Complex Moderate Moderate Moderate Time (minutes) 15–20 10–15 10–15 10–15 15–20 10–20 10à ¢â‚¬â€œ15 20–25 15–25 10–15 10–15 15–20 15–20 20–25 15–20 15–20 10–15 15–20 15–20 10–15 10–15 25–30 5–10 15–20 20–25 15–20 30–40 25–35 20–25 40–55 40–55 25–35 30–40 30–40 Item E8-1 E8-2 E8-3 E8-4 E8-5 E8-6 E8-7 E8-8 E8-9 E8-10 E8-11 E8-12 E8-13 E8-14 E8-15 E8-16 E8-17 E8-18 E8-19 E8-20 E8-21 E8-22 E8-23 E8-24 E8-25 E8-26 P8-1 P8-2 P8-3 P8-4 P8-5 P8-6 P8-7 P8-8 Description Inventoriable costs. Inventoriable costs. Inventoriable costs. Inventoriable costs- perpetual. Inventoriable costs- error adjustments. Determining merchandise amounts- periodic. Purchases recorded net. Purchases recorded, gross method. Periodic versus perpetual entries. Inventory errors, periodic. Inventory errors. Inventory errors. FIFO and LIFO- periodic and perpetual. FIFO, LIFO and average cost determination. FIFO, LIFO, average cost inventory. Compute FIFO, LIFO, average cost- periodic. FIFO and LIFO; periodic and perpetual. FIFO and LIFO; income statement presentation. FIFO and LIFO effects. FIFO and LIFO- periodic. LIFO effect. Alternate inventory methods- comprehensive. Dollar-value LIFO. Dollar-value LIFO. Dollar-value LIFO. Dollar-value LIFO. Various inventory issues. Inventory adjustments. Purchases recorded gross and net. Compute FIFO, LIFO, and average cost- periodic and perpetual. Compute FIFO, LIFO, and average cost- periodic and perpetual. Compute FIFO, LIFO, and average cost- periodic and perpetual. Financial statement effects of FIFO and LIFO. Dollar-value LIFO. 8-3 ASSIGNMENT CHARACTERISTICS TABLE (Continued) Item P8-9 P8-10 P8-11 CA8-1 CA8-2 CA8-3 CA8-4 CA8-5 CA8-6 CA8-7 CA8-8 CA8-9 CA8-10 CA8-11 Description Internal indexes- dollar-value LIFO. Internal indexes- dollar-value LIFO. Dollar-value LIFO. Inventoriable costs. Inventoriable costs. Inventoriable costs. Accounting treatment of purchase discounts. General inventory issues. LIFO inventory advantages. Average cost, FIFO, and LIFO. LIFO application and advantages. Dollar-value LIFO issues. FIFO and LIFO. LIFO Choices- Ethical Issues Level of Difficulty Moderate Complex Moderate Moderate Moderate Moderate Simple Moderate Simple Simple Moderate Moderate Moderate Moderate Time (minutes) 25–35 30–35 40–50 15–20 15–25 25–35 15–25 20–25 15–20 15–20 25–30 25–30 30–35 20–25 8-4 ANSWERS TO QUESTIONS 1. In a retailing concern, inventory normally consists of only one category, that is the product awaiting resale. In a manufacturing enterprise, inventories consist of raw materials, work in process, and finished goods. Sometimes a manufacturing or factory supplies inventory account is also included. a) Inventories are unexpired costs and represent future benefits to the owner. A statement of financial position includes a listing of all unexpired costs (assets) at a specific point in time. Because inventories are assets owned at the specific point in time for which a statement of financ ial position is prepared, they must be included in order that the owners’ financial position will be presented fairly. (b) Beginning and ending inventories are included in the computation of net income only for the purpose of arriving at the cost of goods sold during the period of time covered by the statement. Goods included in the beginning inventory which are no longer on hand are expired costs to be matched against revenues earned during the period. Goods included in the ending inventory are unexpired costs to be carried forward to a future period, rather than expensed. 3. In a perpetual inventory system, data are available at any time on the quantity and dollar amount of each item of material or type of merchandise on hand. A physical inventory means that inventory is periodically counted (at least once a year) but that up-to-date records are not necessarily maintained. Discrepancies often occur between the physical count and the perpetual records because of clerical errors, theft, waste, misplacement of goods, etc. 4. No. Mariah Carey, Inc. should not report this amount on its balance sheet. As consignee, it does not own this merchandise and therefore it is inappropriate for it to recognize this merchandise as part of its inventory. Product financing arrangements are essentially off-balance-sheet financing devices. These arrangements make it appear that a company has sold its inventory or never taken title to it so they can keep loans off their balance sheet. A product financing arrangement should not be recorded as a sale. Rather, the inventory and related liability should be reported on the balance sheet. (a) (b) (c) (d) (e) (f) Inventory. Not shown, possibly in a note to the financial statements if material. Inventory. Inventory, separately disclosed as raw materials. Not shown, possibly a note to the financial statements. Inventory or manufacturing supplies. 2. 5. 6. 7. This omission would have no effect upon the net income for the year, since the purchases and the ending inventory are understated in the same amount. With respect to financial position, both the inventory and the accounts payable would be understated. Materiality would be a factor in determining whether an adjustment for this item should be made as omission of a large item would distort the amount of current assets and the amount of current liabilities. It, therefore, might influence the current ratio to a considerable extent. Cost, which has been defined generally as the price paid or consideration given to acquire an asset, is the primary basis for accounting for inventories. As applied to inventories, cost means the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. These applicable expenditures and charges include all acquisition and production costs but exclude all selling expenses and that portion of general and administrative expenses not clearly related to production. Freight charges applicable to the product are considered a cost of the goods. 8-5 8. Questions Chapter 8 (Continued) 9. By their nature, product costs â€Å"attach† to the inventory and are recorded in the inventory account. These costs are directly connected with the bringing of goods to the place of business of the buyer and converting such goods to a salable condition. Such charges would include freight charges on goods purchased, other direct costs of acquisition, and labor and other production costs incurred in processing the goods up to the time of sale. Period costs are not considered to be directly related to the acquisition or production of goods and therefore are not considered to be a part of inventories. Conceptually, these expenses are as much a cost of the product as the initial purchase price and related freight charges attached to the product. While selling expenses are generally considered as more directly related to the cost of goods sold than to the unsold inventory, in most cases, though, the costs, especially administrative expenses, are so unrelated or indirectly related to the immediate production process that any allocation is purely arbitrary. Interest costs are considered a cost of financing and are generally expensed as incurred, when related to getting inventories ready for sale. 10. Cash discounts (purchase discounts) should not be accounted for as financial income when payments are made. Income should be recognized when the earning process is complete (when the company sells the inventory). Furthermore, a company does not earn revenue from purchasing goods. Cash discounts should be considered as a reduction in the cost of the items purchased. 11. $100. 00, $105. 00, $103. 00. (Transportation-In not included for discount. ) 12. Arguments for the specific identification method are as follows: (1) It provides an accurate and ideal matching of costs and revenues because the cost is specifically identified with the sales price. 2) The method is realistic and objective since it adheres to the actual physical flow of goods rather than an artificial flow of costs. (3) Inventory is valued at actual cost instead of an assumed cost. Arguments against the specific identification method include the following: (1) (2) (3) (4) The cost of using it restricts its use to goods of high unit value. The method is impractical for manufacturing processes or cases in which units are comming led and identity lost. It allows an artificial determination of income by permitting arbitrary selection of the items to be sold from a homogeneous group. It may not be a meaningful method of assigning costs in periods of changing price levels. 13. The first-in, first-out method approximates the specific identification method when the physical flow of goods is on a FIFO basis. When the goods are subject to spoilage or deterioration, FIFO is particularly appropriate. In comparison to the specific identification method, an attractive aspect of FIFO is the elimination of the danger of artificial determination of income by the selection of advantageously priced items to be sold. The basic assumption is that costs should be charged in the order in which they are incurred. As a result, the inventories are stated at the latest costs. Where the inventory is consumed and valued in the FIFO manner, there is no accounting recognition of 8-6 Questions Chapter 8 (Continued) unrealized gain or loss. A criticism of the FIFO method is that it maximizes the effects of price fluctuations upon reported income because current revenue is matched with the oldest costs which are probably least similar to current replacement costs. On the other hand, this method produces a balance sheet value for the asset close to current replacement costs. It is claimed that FIFO is deceptive when used in a period of rising prices because the reported income is not fully available since a part of it must be used to replace inventory at higher cost. The results achieved by the weighted average method resemble those of the specific identification method where items are chosen at random or there is a rapid inventory turnover. Compared with the specific identification method, the weighted average method has the advantage that the goods need not be individually identified; therefore accounting is not so costly and the method can be applied to fungible goods. The weighted average method is also appropriate when there is no marked trend in price changes. In opposition, it is argued that the method is illogical. Since it assumes that all sales are made proportionally from all purchases and that inventories will always include units from the first purchases, it is argued that the method is illogical because it is contrary to the chronological flow of goods. In addition, in periods of price changes there is a lag between current costs and costs assigned to income or to the valuation of inventories. If it is assumed that actual cost is the appropriate method of valuing inventories, last-in, first-out is not theoretically correct. In general, LIFO is directly adverse to the specific identification method because the goods are not valued in accordance with their usual physical flow. An exception is the application of LIFO to piled coal or ores which are more or less consumed in a LIFO manner. Proponents argue that LIFO provides a better matching of current costs and revenues. During periods of sharp price movements, LIFO has a stabilizing effect upon reported income figures because it eliminates paper income and losses on inventory and smooths the impact of income taxes. LIFO opponents object to the method principally because the inventory valuation reported in the balance sheet could be seriously misleading. The profit figures can be artificially influenced by management through contracting or expanding inventory quantities. Temporary involuntary depletion of LIFO inventories would distort current income by the previously unrecognized price gains or losses applicable to the inventory reduction. 14. A company may obtain a price index from an outside source (external index)- the government, a trade association, an exchange- or by computing its own index (internal index) using the double extension method. Under the double extension method the ending inventory is priced at both base-year costs and at current-year costs, with the total current cost divided by the total base cost to obtain the current year index. 15. Under the double extension method, LIFO inventory is priced at both base-year costs and currentyear costs. The total current-year cost of the inventory is divided by the total base-year cost to obtain the current-year index. The index for the LIFO pool consisting of product A and product B is computed as follows: Base-Year Cost Product Units Unit Total A 25,500 $10. 20 $260,100 B 10,350 $37. 00 382,950 December 31, 2007 inventory $643,050 Current-Year Cost Base-Year Cost = $956,460 $643,050 Current-Year Cost Unit Total $19. 00 $484,500 $45. 60 471,960 $956,460 = 148. 74, index at 12/31/07. 8-7 Questions Chapter 8 (Continued) 16. The LIFO method results in a smaller net income because later costs, which are higher than earlier costs, are matched against revenue. Conversely, in a period of falling prices, the LIFO method would result in a higher net income because later costs in this case would be lower than earlier costs, and these later costs would be matched against revenue. 17. The dollar-value method uses dollars instead of units to measure increments, or reductions in a LIFO inventory. After converting the closing inventory to the same price level as the opening inventory, the increases in inventories, priced at base-year costs, is converted to the current price level and added to the opening inventory. Any decrease is subtracted at base-year costs to determine the ending inventory. The rincipal advantage is that it requires less record-keeping. It is not necessary to keep records nor make calculations of opening and closing quantities of individual items. Also, the use of a base inventory amount gives greater flexibility in the makeup of the base and eliminates many detailed calculations. The unit LIFO inventory costing method is appli ed to each type of item in an inventory. Any type of item removed from the inventory base (e. g. , magnets) and replaced by another type (e. g. , coils) will cause the old cost (magnets) to be removed from the base and to be replaced by the more current cost of the other item (coils). The dollar-value LIFO costing method treats the inventory base as being composed of a base of cost in dollars rather than of units. Therefore a change in the composition of the inventory (less magnets and more coils) will not change the cost of inventory base so long as the amount of the inventory stated in base-year dollars does not change. 18. (a) LIFO layer- a LIFO layer (increment) is formed when the ending inventory at base-year prices exceeds the beginning inventory at base-year prices. (b) LIFO reserve- the difference between the inventory method used for internal purposes and LIFO. c) LIFO effect- the change in the LIFO reserve (Allowance to Reduce Inventory to LIFO) from one period to the next. 19. December 31, 2007 inventory at December 31, 2006 prices, $1,026,000 ? 1. 08 Less: Inventory, December 31, 2006 Increment added during 2007 at base prices Increment added during 2007 at December 31, 2007 prices, $150,000 X 1. 08 Add: Inventory at December 31, 2006 Inventory, Decemb er 31, 2007, under dollar-value LIFO method $950,000 800,000 $150,000 $162,000 800,000 $962,000 20. Phantom inventory profits occur when the inventory costs matched against sales are less than the replacement cost of the inventory. The costs of goods sold therefore is understated and profit is considered overstated. Phantom profits are said to occur when FIFO is used during periods of rising prices. High inventory profits through involuntary liquidation occur if a company is forced to reduce its LIFO base or layers. If the base or layers of old costs are eliminated, strange results can occur because old, irrelevant costs can be matched against current revenues. A distortion in reported income for a given period may result, as well as consequences that are detrimental from an income tax point of view. -8 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 8-1 Billie Joel Company Balance Sheet (Partial) December 31 Current assets Cash Receivables (net) Inventories Finished goods Work in process.. Raw materials Prepaid insurance . Total current assets. $150,000 200,000 335,000 685,000 41,000 $1,316,000 $ 190,000 400,000 BRIEF EXERCISE 8-2 Inventory (150 X $30). Accounts Payable.. Accounts Payable (6 X $30) Inventory. Accounts Receivable (125 X $50).. Sales Cost of Goods Sold (125 X $30).. Inventory. 8-9 4,500 4,500 180 180 6,250 6,250 3,750 3,750 BRIEF EXERCISE 8-3 December 31 inventory per physical count Goods-in-transit purchased FOB shipping point Goods-in-transit sold FOB destination December 31 inventory $200,000 15,000 22,000 $237,000 BRIEF EXERCISE 8-4 Cost of goods sold as reported Overstatement of 12/31/06 inventory Overstatement of 12/31/07 inventory Corrected cost of goods sold 12/31/07 retained earnings as reported Overstatement of 12/31/07 inventory Corrected 12/31/07 retained earnings $1,400,000 (110,000) 45,000 $1,335,000 $5,200,000 (45,000) $5,155,000 BRIEF EXERCISE 8-5 $11,850 1,000 Weighted average cost per unit Ending inventory 300 X $11. 85 = Cost of goods available for sale Deduct ending inventory Cost of goods sold (700 X $11. 85) = $11. 85 $3,555 $11,850 3,555 $ 8,295 8-10 BRIEF EXERCISE 8-6 Ending inventory (April 23) 300 X $13 = $3,900 $11,850 3,900 $ 7,950 Cost of goods available for sale Deduct ending inventory Cost of goods sold BRIEF EXERCISE 8-7 April 1 April 15 Ending inventory Cost of goods available for sale Deduct ending inventory Cost of goods sold 250 X $10 = 50 X $12 = $2,500 600 $3,100 $11,850 3,100 $ 8,750 BRIEF EXERCISE 8-8 2005 2006 $123,200 ? 1. 10 = $112,000 $100,000 X 1. 00 $12,000* X 1. 10 *$112,000 – $100,000 2007 $134,560 ? 1. 16 = $116,000 $100,000 X 1. 00 $12,000 X 1. 10 $4,000** X 1. 16 **$116,000 – $112,000 8-11 $100,000 $100,000 13,200 $113,200 $100,000 13,200 4,640 $117,840 BRIEF EXERCISE 8-9 2006 inventory at base amount ($21,708 ? 1. 08) 2005 inventory at base amount Increase in base inventory 2006 inventory under LIFO Layer one Layer two $19,750 X 1. 00 $ 350 X 1. 08 $19,750 378 $20,128 2007 inventory at base amount ($25,935 ? 1. 14) 2006 inventory at base amount Increase in base inventory 2007 inventory under LIFO Layer one Layer two Layer three $19,750 X 1. 00 $ 350 X 1. 08 $ 2,650 X 1. 14 $19,750 378 3,021 $23,149 $22,750 20,100 $ 2,650 $20,100 (19,750) $ 350 8-12 SOLUTIONS TO EXERCISES EXERCISE 8-1 (15–20 minutes) Items 1, 3, 5, 8, 11, 13, 14, 16, and 17 would be reported as inventory in the financial statements. The following items would not be reported as inventory: 2. Cost of goods sold in the income statement. 4. Not reported in the financial statements. 6. Cost of goods sold in the income statement. 7. Cost of goods sold in the income statement. 9. Interest expense in the income statement. 10. Advertising expense in the income statement. 12. Office supplies in the current assets section of the balance sheet. 15. Not reported in the financial statements. 18. Short-term investments in the current asset section of the balance sheet. EXERCISE 8-2 (10–15 minutes) Inventory per physical count Goods in transit to customer, f. . b. destination Goods in transit from vendor, f. o. b. seller Inventory to be reported on balance sheet $441,000 + 38,000 + 51,000 $530,000 The consigned goods of $61,000 are not owned by Jose Oliva and were properly excluded. The goods in transit to a customer of $46,000, shipped f. o. b. shipping point, are properly excluded from the inventory because the title to the goods passed when they left the seller (Oliva) and th erefore a sale and related cost of goods sold should be recorded in 2007. The goods in transit from a vendor of $83,000, shipped f. o. b. estination, are properly excluded from the inventory because the title to the goods does not pass to Oliva until the buyer (Oliva) receives them. 8-13 EXERCISE 8-3 (10–15 minutes) 1. 2. 3. Include. Merchandise passes to customer only when it is shipped. Do not include. Title did not pass until January 3. Include in inventory. Product belonged to Harlowe Inc. at December 31, 2007. 4. Include in inventory. Under invoice terms, title passed when goods were shipped. Do not include. Goods received on consignment remain the property of the consignor. 5. EXERCISE 8-4 (10–15 minutes) 1. Raw Materials Inventory .. Accounts Payable 2. Raw Materials Inventory .. Accounts Payable No adjustment necessary. Accounts Payable .. Raw Materials Inventory. 5. Raw Materials Inventory .. Accounts Payable 19,800 19,800 7,500 7,500 28,000 28,000 8,100 8,100 3. 4. 8-14 EXERCISE 8-5 (15–20 minutes) (a) Inventory December 31, 2007 (unadjusted) Transaction 2 Transaction 3 Transaction 4 Transaction 5 Transaction 6 Transaction 7 Transaction 8 Inventory December 31, 2007 (adjusted) (b) Transaction 3 Sales.. Accounts Receivable .. (To reverse sale entry in 2007) Transaction 4 Purchases (Inventory) .. Accounts Payable .. (To record purchase of merchandise in 2007) Transaction 8 Sales Returns and Allowances. Accounts Receivable .. 2,600 2,600 15,630 15,630 $234,890 13,420 -0-08,540 (10,438) (10,520) 1,500 $237,392 12,800 12,800 8-15 EXERCISE 8-6 (10–20 minutes) 2005 Sales Sales Returns Net Sales Beginning Inventory Ending Inventory Purchases Purchase Returns and Allowances Transportation-in Cost of Good Sold Gross Profit $290,000 11,000 279,000 20,000 32,000* 242,000 5,000 8,000 233,000 46,000 2006 $360,000 13,000 347,000 32,000 37,000 260,000 8,000 9,000 256,000 91,000 2007 $410,000 20,000 390,000 37,000** 44,000 298,000 10,000 12,000 293,000 97,000 *This was given as the beginning inventory for 2006. *This was calculated as the ending inventory for 2006. EXERCISE 8-7 (10–15 minutes) (a) May 10 Purchases Accounts Payable .. ($15,000 X . 98) May 11 Purchases Accounts Payable .. ($13,200 X . 99) May 19 Accounts Payable. Cash. May 24 Purchases Accounts Payable ($11,500 X . 98). 8-16 14,700 14,700 13,068 13,068 14,700 14,700 11,270 11,270 EXERCISE 8-7 (Continued) (b) May 31 Purchase Discounts Lost . Accounts Payable ($13,200 X . 01) .. (Discount lost on purchase of May 11, $13,200, terms 1/15, n/30) EXERCISE 8-8 (a) Feb. 1 Inventory [$10,800 – ($10,800 X 10%)].. Accounts Payable.. Feb. 4 Accounts Payable [$2,500 – ($2,500 X 10%)] .. Inventory. Feb. 13 Accounts Payable ($9,720 – $2,250) .. Inventory (3% X $7,470) Cash (b) Feb. 1 Purchases [$10,800 – ($10,800 X 10%)] .. Accounts Payable.. Accounts Payable [$2,500 – ($2,500 X 10%)] Purchase Returns and Allowances Feb. 13 Accounts Payable ($9,720 – $2,250) .. Purchase Discounts (3% X $7,470). Cash 8-17 132 132 9,720 9,720 2,250 2,250 7,470 224. 10 7,245. 90 9,720 9,720 Feb. 4 2,250 2,250 7,470 224. 10 7,245. 90 EXERCISE 8-8 (Continued) (c) Purchase price (list) Less: Trade discount (10% X $10,800) Price on which cash discount based Less: Cash discount (3% X $9,720) Net price EXERCISE 8-9 (15–25 minutes) (a) Jan. 4 Accounts Receivable. Sales (80 X $8) Jan. 11 Purchases ($150 X $6).. Accounts Payable .. Accounts Receivable. Sales (120 X $8. 75). Jan. 20 Purchases (160 X $7) . Accounts Payable .. Accounts Receivable. Sales (100 X $9) Jan. 31 Inventory ($7 X 110) Cost of Goods Sold. Purchases ($900 + $1,120) . Inventory (100 X $5).. *($500 + $2,020 – $770) 770 1,750* 2,020 500 1,120 1,120 900 900 900 900 1,050 1,050 640 640 $10,800 1,080 9,720 291. 60 $ 9,428. 40 Jan. 13 Jan. 27 8-18 EXERCISE 8-9 (Continued) (b) Sales ($640 + $1,050 + $900) Cost of goods sold Gross profit Jan. 4 $2,590 1,750 $ 840 640 640 400 400 900 900 1,050 1,050 700 700 1,120 1,120 900 900 650 650 (c) Accounts Receivable .. Sales (80 X $8) . Cost of Goods Sold .. Inventory (80 X $5) .. Jan. 11 Inventory . Accounts Payable (150 X $6) Accounts Receivable .. Sales (120 X $8. 75) .. Cost of Goods Sold .. Inventory ([(20 X $5) + (100 X $6)] Jan. 13 Jan. 20 Inventory . Accounts Payable (160 X $7) . Accounts Receivable . Sales (100 X $9).. Cost of Goods Sold .. Inventory [(50 X $6) + (50 X $7)] .. Jan. 27 (d) Sales Cost of goods sold ($400 + $700 +$650) Gross profit 8-19 $2,590 1,750 $ 840 EXERCISE 8-10 (10–15 minutes) Current Year Overstated Overstated Overstated Overstated No effect Overstated* No effect No effect Overstated Overstated Overstated Overstated Subsequent Year No effect No effect No effect Understated No effect No effect No effect No effect No effect No effect No effect Understated . Working capital Current ratio Retained earnings Net income Working capital Current ratio Retained earnings Net income Working capital Current ratio Retained earnings Net income 2. 3. *Assume that the correct current ratio is greater than one. EXERCISE 8-11 (10–15 minutes) (a) $370,000 = 1. 85 to 1 $200,000 $370,000 + $22,000 – $13,000 + $3,000 $382,000 = = 2. 06 to 1 $200,000 – $15,000 $185,000 Adjust Income Increase (Decrease) $22,000 15,000 (13,000) (b) (c) 1. 2. 3. 4. Event Understatement of ending inventory Overstatement of purchases Overstatement of ending inventory Overstatement of advertising expense; understatement of cost of goods sold Effect of Error Decreases net income Decreases net income Increases net income 0 $24,000 8-20 EXERCISE 8-12 (15–20 minutes) Errors in Inventories Net Income Year 2002 2003 2004 2005 2006 2007 Per Books $ 50,000 52,000 54,000 56,000 58,000 60,000 $330,000 2,000 8,000 $3,000 9,000 $11,000 2,000 Add Overstatement Jan. 1 Deduct Understatement Jan. 1 Deduct OverstateAdd UnderstateCorrected Net Income $ 47,000 46,000 $11,000 74,000 45,000 60,000 50,000 $322,000 ent Dec. 31 ment Dec. 31 $3,000 9,000 EXERCISE 8-13 (15–20 minutes) (a) (1) Cost of Goods Sold LIFO 500 @ $13 = 500 @ $12 = $ 6,500 6,000 $12,500 $ 3,000 8,400 $11,400 Ending Inventory 300 @ $10 = 300 @ $12 = $3,000 3,600 $6,600 $6,500 1,200 $7,700 (2) FIFO 300 @ $10 = 700 @ $12 = 500 @ $13 = 100 @ $12 = (b) LIFO 100 @ $10 = 300 @ $12 = 200 @ $1 3 = $ 1,000 3,600 2,600 $ 7,200 8-21 EXERCISE 8-13 (Continued) (c) Sales Cost of Goods Sold Gross Profit (FIFO) $25,400 = ($24 X 200) + ($25 X 500) + ($27 X 300) 11,400 $14,000 Note: FIFO periodic and FIFO perpetual provide the same gross profit and inventory value. d) LIFO matches more current costs with revenue. When prices are rising (as is generally the case), this results in a higher amount for cost of goods sold and a lower gross profit. As indicated in this exercise, prices were rising and cost of goods sold under LIFO was higher. EXERCISE 8-14 (20–25 minutes) (a) (1) LIFO 600 @ $6. 00 = $3,600 100 @ $6. 08 = 608 $4,208 (2) Average cost Total cost Total units $33,655* 5,300 = = $6. 35 average cost per unit 700 @ $6. 35 = $4,445 8-22 EXERCISE 8-14 (Continued) *Units 600 1,500 800 1,200 700 500 5,300 (b) (1) FIFO 500 @ $6. 79 = $3,395 200 @ $6. 0 = 1,320 $4,715 (2) LIFO 100 @ $6. 00 = $ 600 100 @ $6. 08 = 608 500 @ $6. 79 = 3,395 $4,603 (c) Total merchandise available fo r sale Less inventory (FIFO) Cost of goods sold $33,655 4,715 $28,940 @ @ @ @ @ @ Price $6. 00 $6. 08 $6. 40 $6. 50 $6. 60 $6. 79 = = = = = = Total Cost $ 3,600 9,120 5,120 7,800 4,620 3,395 $33,655 (d) FIFO. 8-23 EXERCISE 8-15 (15–20 minutes) (a) Shania Twain Company COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2007 Units 600 800 200 1,600 Unit Cost $12. 00 11. 00 10. 00 Total Cost $ 7,200 8,800 2,000 $18,000 March 26, 2007 February 16, 2007 January 25, 2007 (portion) March 31, 2007, inventory (b) Shania Twain Company COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER LIFO INVENTORY METHOD March 31, 2007 Units 600 1,000 1,600 Unit Cost $8. 00 9. 00 Total Cost $ 4,800 9,000 $13,800 Beginning inventory January 5, 2007 (portion) March 31, 2007, inventory (c) Shania Twain Company COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER WEIGHTED AVERAGE INVENTORY METHOD March 31, 2007 Units 600 1,200 1,300 800 600 4,500 Unit Cost $ 8. 00 9. 00 10. 00 11. 00 12. 00 Total Cost $ 4,800 10,800 13,000 8,800 7,200 $44,600 Beginning inventory January 5, 2007 January 25, 2007 February 16, 2007 March 26, 2007 Weighted average cost ($44,600 ? 4,500) March 31, 2007, inventory *Rounded off. 1,600 $ 9. 91* $ 9. 91 $15,856 8-24 EXERCISE 8-16 (15–20 minutes) (a) (1) 2,100 units available for sale – 1,400 units sold = 700 units in the ending inventory. 500 @ $4. 58 = $2,290 200 @ 4. 60 = 920 700 $3,210 Ending inventory at FIFO cost. (2) 100 @ $4. 10 = 600 @ 4. 20 = 700 $ 410 2,520 $2,930 Ending inventory at LIFO cost. (3) $9,240 cost of goods available for sale ? 2,100 units available for sale = $4. 40 weighted-average unit cost. 00 units X $4. 40 = $3,080 Ending inventory at weighted-average cost. (b) (1) LIFO will yield the lowest gross profit because this method will yield the highest cost of goods sold figure in the situation presented. The company has experienced rising purchase prices for its inventory acquisitions. In a period of rising prices, LIFO will yield the highest cost of goods sold because the most recent purchase prices (which are the higher prices in this case) are used to price cost of goods sold while the older (and lower) purchase prices are used to cost the ending inventory. 2) LIFO will yield the lowest ending inventory because LIFO uses the oldest costs to price the ending inventory units. The company has experienced rising purchase prices. The oldest costs in this case are the lower costs. 8-25 EXERCISE 8-17 (10–15 minutes) (a) (1) 400 @ $30 = 160 @ $25 = $12,000 4,000 $16,000 (2) 400 @ $20 = 160 @ $25 = $ 8,000 4,000 $12,000 (b) (1) (2) FIFO LIFO $16,000 [same as (a)] 100 @ $20 = 60 @ $25 = 400 @ $30 = $ 2,000 1,500 12,000 $15,500 8-26 EXERCISE 8-18 (15–20 minutes) First-in, first-out Sales Cost of goods sold: Inventory, Jan. Purchases Cost of goods available Inventory, Dec. 31 Cost of goods sold Gross profit Operating expenses Net income $120,000 592,000* 712,000 235,000** 477,000 573,000 200,000 $ 373,000 $1,050,000 $120,000 592,000 712,000 164,000*** 548,000 502,000 200,000 $ 302,000 Last-in, first-out $1,050,000 *Purchases 6,000 @ $22 = 10,000 @ $25 = 7,000 @ $30 = $132,000 250,000 210,000 $592,000 **Computation of inventory, Dec. 31: First-in, first-out: 7,000 units @ $30 = 1,000 units @ $25 = $210,000 25,000 $235,000 ***Last-in, first-out: 6,000 units @ $20 = 2,000 units @ $22 = $120,000 44,000 $164,000 8-27 EXERCISE 8-19 (20–25 minutes) Sandy Alomar Corporation SCHEDULES OF COST OF GOODS SOLD For the First Quarter Ended March 31, 2007 Schedule 1 First-in, First-out Beginning inventory Plus purchases Cost of goods available for sale Less ending inventory Cost of goods sold $ 40,000 146,200* 186,200 61,300 $124,900 Schedule 2 Last-in, First-out $ 40,000 146,200 186,200 56,800 $129,400 *($33,600 + $25,500 + $38,700 + $48,400) Schedules Computing Ending Inventory Units Beginning inventory Plus purchases Units available for sale Less sales ($150,000 ? 5) Ending inventory 10,000 34,000 44,000 30,000 14,000 The unit computation is the same for both assumptions, but the cost assigned to the units of ending inventory are different. First-in, First-out (Schedule 1) 11,000 3,000 14,000 at $4. 40 = at $4. 30 = $48,400 12,900 $61,300 Last-in, First-out (Schedule 2) 10,000 at $4. 00 = 4,000 at $4. 20 = 14,000 $40,000 16,800 $56,800 8-28 EXERCISE 8-20 (10–15 minutes) (a) FIFO Ending Inventory 12/31/07 $ 827. 64 76 @ $10. 89* = 24 @ $11. 88** = 285. 12 $1,112. 76 *[$11. 00 – . 01 ($11. 00)] **[$12. 00 – . 01 ($12. 00)] (b) LIFO Cost of Goods Sold- 2007 76 @ $10. 89 = $ 827. 64 84 @ $11. 88 = 997. 92 90 @ $14. 85* = 1,336. 50 15 @ $15. 84** = 237. 0 $3,399. 66 *[$15. 00 – . 01 ($15)] **[$16. 00 – . 01 ($16)] (c) FIFO matches older costs with revenue. When prices are declining, as in this case, this results in a higher amount for cost of goods sold. Therefore, it is recommended that FIFO be used by Howie Long Shop to minimize taxable income. EXERCISE 8-21 (10â₠¬â€œ15 minutes) (a) The difference between the inventory used for internal reporting purposes and LIFO is referred to as the Allowance to Reduce Inventory to LIFO or the LIFO reserve. The change in the allowance balance from one period to the next is called the LIFO effect (or as shown in this example, the LIFO adjustment). LIFO subtracts inflation from inventory costs by charging the items purchased recently to cost of goods sold. As a result, ending inventory (assuming increasing prices) will be lower than FIFO or average cost. 8-29 (b) EXERCISE 8-21 (Continued) (c) Cash flow was computed as follows: Revenue $3,200,000 Cost of goods sold (2,800,000) Operating expenses (150,000) Income taxes (75,600) Cash flow $ 174,400 If the company has any sales on account or payables, then the cash flow number is incorrect. It is assumed here that the cash basis of accounting is used. (d) The company has extra cash because its taxes are less. The reason taxes are lower is because cost of goods sold (in a period of inflation) is higher under LIFO than FIFO. As a result, net income is lower which leads to lower income taxes. If prices are decreasing, the opposite effect results. EXERCISE 8-22 (25–30 minutes) (a) (1) Ending inventory- Specific Identification Date No. Units Unit Cost December 2 July 20 100 50 150 $30 25 Total Cost $3,000 1,250 $4,250 (2) Ending inventory- FIFO Date No. Units December 2 September 4 100 50 150 Unit Cost $30 28 Total Cost $3,000 1,400 $4,400 (3) Ending inventory- LIFO Date No. Units January 1 March 15 100 50 150 Unit Cost $20 24 Total Cost $2,000 1,200 $3,200 8-30 EXERCISE 8-22 (Continued) (4) Ending inventory- Average Cost Date January 1 March 15 July 20 September 4 December 2 Explanation Beginning inventory Purchase Purchase Purchase Purchase No. Units 100 300 300 200 100 1,000 Unit Cost $20 24 25 28 30 Total Cost $ 2,000 7,200 7,500 5,600 3,000 $25,300 $25,300 ? 1,000 = $25. 30 Ending Inventory- Average Cost No. Units 150 (b) Unit Cost $25. 30 Total Cost $3,795 Double Extension Method Base-Year Costs Current Costs Total $3,000 Units 100 50 Current-Year Cost Per Unit $30 $28 Total $3,000 1,400 $4,400 Units 150 Base-Year Cost Per Unit $20 Ending Inventory for the Period at Current Cost Ending Inventory for the Period at Base-Year Cost = $4,400 = 1. 4667 $3,000 $3,000 2,000 1,000 1. 4667 1,467 2,000 $3,467 Ending inventory at base-year prices ($4,400 ? 1. 4667) Base layer (100 units at $20) Increment in base-year dollars Current index Increment in current dollars Base layer (100 units at $20) Ending inventory at dollar-value LIFO 8-31 EXERCISE 8-23 (5–10 minutes) $97,000 – $92,000 = $5,000 increase at base prices. $98,350 – $92,600 = $5,750 increase in dollar-value LIFO value. $5,000 X Index = $5,750. Index = $5,750 ? $5,000. Index = 115 EXERCISE 8-24 (15–20 minutes) (a) 12/31/07 inventory at 1/1/07 prices, $140,000 ? 1. 12 Inventory 1/1/07 Inventory decrease at base prices Inventory at 1/1/07 prices Less decrease at 1/1/07 prices Inventory 12/31/07 under dollar-value LIFO method (b) 12/31/08 inventory at base prices, $172,500 ? 1. 15 12/31/07 inventory at base prices Inventory increment at base prices Inventory at 12/31/07 Increment added during 2008 at 12/31/08 prices, $25,000 X 1. 15 Inventory 12/31/08 $125,000 160,000 $ 35,000 $160,000 35,000 $125,000 $150,000 125,000 $ 25,000 $125,000 28,750 $153,750 EXERCISE 8-25 (20–25 minutes) Change from Prior Year - $+30,000 (20,000) +4,000 +16,000 +12,000 Current $ 2004 2005 2006 2007 2008 2009 $ 80,000 115,500 108,000 122,200 154,000 176,900 Price Index 1. 00 1. 05 1. 20 1. 30 1. 40 1. 45 8-32 Base Year $ $ 80,000 110,000 90,000 94,000 110,000 122,000 EXERCISE 8-25 (Continued) Ending Inventory- Dollar-value LIFO: 2004 2005 $80,000 $80,000 @ 1. 00 = 30,000 @ 1. 05 = $ 80,000 31,500 $111,500 2006 $80,000 @ 1. 00 = 10,000 @ 1. 05 = $ 80,000 10,500 $ 90,500 2007 $80,000 @ 1. 00 = 10,000 @ 1. 05 = 4,000 @ 1. 30 = $ 80,000 10,500 5,200 $ 95,700 2009 $80,000 @ 1. 0 = 10,000 @ 1. 05 = 4,000 @ 1. 30 = 16,000 @ 1. 40 = 12,000 @ 1. 45 = 2008 $80,000 @ 1. 00 = 10,000 @ 1. 05 = 4,000 @ 1. 30 = 16,000 @ 1. 40 = $ 80,000 10,500 5,200 22,400 $118,100 $ 80,000 10,500 5,200 22,400 17,400 $135,500 EXERCISE 8-26 (15–20 minutes) Change from Date Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 Current $ $ 70,000 90,300 95,12 0 105,600 100,000 Price Index 1. 00 1. 05 1. 16 1. 20 1. 25 Base-Year $ $70,000 86,000 82,000 88,000 80,000 Prior Year - $+16,000 (4,000) +6,000 (8,000) 8-33 EXERCISE 8-26 (Continued) Ending Inventory- Dollar-value LIFO: Dec. 31, 2003 $70,000 Dec. 1, 2004 $70,000 @ 1. 00 = 16,000 @ 1. 05 = $70,000 16,800 $86,800 Dec. 31, 2005 $70,000 @ 1. 00 = 12,000 @ 1. 05 = $70,000 12,600 $82,600 Dec. 31, 2006 $70,000 @ 1. 00 = 12,000 @ 1. 05 = 6,000 @ 1. 20 = $70,000 12,600 7,200 $89,800 Dec. 31, 2007 $70,000 @ 1. 00 = 10,000 @ 1. 05 = $70,000 10,500 $80,500 8-34 TIME AND PURPOSE OF PROBLEMS Problem 8-1 (Time 30–40 minutes) Purpose- to provide a multipurpose problem with trade discounts, goods in transit, computing internal price indexes, dollar-value LIFO, comparative FIFO, LIFO, and average cost computations, and inventoriable cost identification. Problem 8-2 (Time 25–35 minutes) Purpose- to provide the student with eight different situations that require analysis to determine their impact on inventory, accounts payable, and net sales. Problem 8-3 (Time 20–25 minutes) Purpose- to provide the student with an opportunity to prepare general journal entries to record purchases on a gross and net basis. Problem 8-4 (Time 40–55 minutes) Purpose- to provide a problem where the student must compute the inventory using a FIFO, LIFO, and average cost assumption. These inventory value determinations must be made under two differing assumptions: (1) perpetual inventory records are kept in units only and (2) perpetual records are kept in dollars. Many detailed computations must be made in this problem. Problem 8-5 (Time 40–55 minutes) Purpose- to provide a problem where the student must compute the inventory using a FIFO, LIFO, and average cost assumption. These inventory value determinations must be made under two differing assumptions: (1) perpetual inventory records are kept in units only and (2) perpetual records are kept in dollars. This problem is very similar to Problem 8-4, except that the differences in inventory values must be explained. Problem 8-6 (Time 25–35 minutes) Purpose- to provide a problem where the student must compute cost of goods sold using FIFO, LIFO, and weighted average, under both a periodic and perpetual system. Problem 8-7 (Time 30–40 minutes) Purpose- to provide a problem where the student must identify the accounts that would be affected if LIFO had been used rather than FIFO for purposes of computing inventories. Problem 8-8 (Time 30–40 minutes) Purpose- to provide a problem which covers the use of inventory pools for dollar-value LIFO. The student is required to compute ending inventory, cost of goods sold, and gross profit using dollar-value LIFO, first with one inventory pool and then with three pools. Problem 8-9 (Time 25–35 minutes) Purpose- the student computes the internal conversion price indexes for a LIFO inventory pool and then computes the inventory amounts using the dollar-value LIFO method. Problem 8-10 (Time 30–35 minutes) Purpose- to provide the student with the opportunity to compute inventories using the dollar-value approach. An index must be developed in this problem to price the new layers. This problem will prove difficult for the student because the indexes are hidden. Problem 8-11 (Time 40–50 minutes) Purpose- to provide the student with an opportunity to write a memo on how a dollar-value LIFO pool works. In addition, the student must explain the step-by-step procedure used to compute dollar value LIFO. 8-35 SOLUTIONS TO PROBLEMS PROBLEM 8-1 1. $150,000 – ($150,000 X . 20) = $120,000; $120,000 – ($120,000 X . 10) = $108,000, cost of goods purchased $1,100,000 + $69,000 = $1,169,000. The $69,000 of goods in transit on which title had passed on December 24 (f. o. b. hipping point) should be added to 12/31/06 inventory. The $29,000 of goods shipped (f. o. b. shipping point) on January 3, 2007, should remain part of the 12/31/06 inventory. Because no date was associated with the units issued or sold, the periodic (rather than perpetual) inventory method must be assumed. FIFO inventory cost: 1,000 units at $24 1,100 units at 23 Total 1,500 units at $ 21 600 units at 22 Total 1,500 at $21 2,000 at 22 3,500 at 23 1,000 at 24 8,000 $ 24,000 25,300 $ 49,300 $ 31,500 13,200 $ 44,700 $ 31,500 44,000 80,500 24,000 $180,000 2. 3. LIFO inventory cost: Average cost: Totals $180,000 ? 8,000 = $22. 0 Ending inventory (2,100 X $22. 50) is $47,250. 8-36 PROBLEM 8-1 (Continued) 4. Computation of price indexes: 12/31/06 $252,000 = 105 $240,000 $286,720 = 112 $256,000 12/31/07 Dollar-value LIFO inventory 12/31/06: Increase $240,000 – $200,000 = 12/31/06 price index Increase in terms of 105 Base inventory Dollar-value LIFO inventory $ 40,000 X 1. 05 42,000 2006 Layer 200,000 $242,000 Dollar-value LIFO inventory 12/31/07: Increase $256,000 – $240,000 = 12/31/07 price index Increase in terms of 112 2006 layer Base inventory Dollar-value LIFO inventory 5. $ 16,000 X 1. 12 17,920 2007 Layer 42,000 200,000 $259,920 The inventoriable costs for 2007 are: Merchandise purchased Add: Freight-in Deduct: Purchase returns Purchase discounts Inventoriable cost $16,500 6,800 $909,400 22,000 931,400 23,300 $908,100 8-37 PROBLEM 8-2 James T. Kirk Company Schedule of Adjustments December 31, 2007 Inventory Initial amounts Adjustments: 1. 2. 3. 4. 5. 6. 7. 8. Total adjustments Adjusted amounts 1. $1,520,000 NONE 71,000 30,000 32,000 21,000 27,000 NONE 3,000 184,000 $1,704,000 Accounts Payable $1,200,000 NONE 71,000 NONE NONE NONE NONE 56,000 6,000 133,000 $1,333,000 Net Sales $8,150,000 (40,000) NONE NONE (47,000) NONE NONE NONE NONE (87,000) $8,063,000 The $31,000 of tools on the loading dock were properly included in the physical count. The sale should not be recorded until the goods are picked up by the common carrier. Therefore, no adjustment is made to inventory, but sales must be reduced by the $40,000 billing price. The $71,000 of goods in transit from a vendor to James T. Kirk were shipped f. o. b. shipping point on 12/29/07. Title passes to the buyer as soon as goods are delivered to the common carrier when sold f. o. b. shipping point. Therefore, these goods are properly includable in Kirk’s inventory and accounts payable at 12/31/07. Both inventory and accounts payable must be increased by $71,000. The work-in-process inventory sent to an outside processor is Kirk’s property and should be included in ending inventory. Since this inventory was not in the plant at the time of the physical count, the inventory column must be increased by $30,000. 8-38 2. 3. PROBLEM 8-2 (Continued) 4. The tools costing $32,000 were recorded as sales ($47,000) in 2007. However, these items were returned by customers on December 31, so 2007 net sales should be reduced by the $47,000 return. Also, $32,000 has to be added to the inventory column since these goods were not included in the physical count. The $21,000 of Kirk’s tools shipped to a customer f. o. b. destination are still owned by Kirk while in transit because title does not pass on these goods until they are received by the buyer. Therefore, $21,000 must be added to the inventory column. No adjustment is necessary in the sales column because the sale was properly recorded in 2008 when the customer received the goods. The goods received from a vendor at 5:00 p. m. on 12/31/07 should be included in the ending inventory, but were not included in the physical count. Therefore, $27,000 must be added to the inventory column. No adjustment is made to accounts payable, since the invoice was included in 12/31/07 accounts payable. The $56,000 of goods received on 12/26/07 were properly included in the physical count of inventory; $56,000 must be added to accounts payable since the invoice was not included in the 12/31/07 accounts payable balance. Since one-half of the freight-in cost ($6,000) pertains to merchandise properly included in inventory as of 12/31/07, $3,000 should be added to the inventory column. The remaining $3,000 debit should be reflected in cost of goods sold. The full $6,000 must be added to accounts payable since the liability was not recorded. 5. 6. 7. 8. 8-39 PROBLEM 8-3 (a) (1) 8/10 Purchases. Accounts Payable .. 8/13 Accounts Payable. Purchase Returns and Allowances 8/15 Purchases. Accounts Payable .. 8/25 Purchases. Accounts Payable .. 8/28 Accounts Payable. Cash . 9,000 9,000 1,200 1,200 12,000 12,000 15,000 15,000 12,000 12,000 (2) Purchases- addition in cost of goods sold section of income statement. Purchase returns and allowances- deduction from purchases in cost of goods sold section of the income statement. Accounts payable- current liability in the current liabilities section of the balance sheet. 8/10 Purchases. Accounts Payable ($9,000 X . 98) .. 8/13 Accounts Payable. Purchase Returns and Allowances ($1,200 X . 98) 8-40 (b) (1) 8,820 8,820 1,176 1,176 PROBLEM 8-3 (Continued) 8/15 Purchases .. Accounts Payable ($12,000 X . 99).. 8/25 Purchases .. Accounts Payable ($15,000 X . 98).. 8/28 Accounts Payable Purchase Discounts Lost. Cash 2. 8/31 Purchase Discounts Lost. Accounts Payable . (. 02 X [$9,000 – $1,200]) 11,880 11,880 14,700 14,700 11,880 120 12,000 156 156 3. Same as part (a) (2) except: Purchase Discounts Lost- treat as financial expense in income statement. (c) The second method is better theoretically because it results in the inventory being carried net of purchase discounts, and purchase discounts not taken are shown as an expense. The first method is normally used, however, for practical reasons. 8-41 PROBLEM 8-4 (a) Purchases Total Units April 1 (balance on hand) April 4 April 11 April 18 April 26 April 30 Total units Total units sold Total units (ending inventory) 100 400 300 200 500 200 1,700 1,400 300 Sales Total Units April 5 April 12 April 27 April 28 Total units 300 200 800 100 1,400 Assuming costs are not computed for each withdrawal: (1) First-in, first-out. Date of Invoice April 30 April 26 No. Units 200 100 Unit Cost $5. 80 5. 60 Total Cost $1,160 560 $1,720 (2) Last-in, first-out. Date of Invoice April 1 April 4 No. Units 100 200 Unit Cost $5. 0 5. 10 Total Cost $ 500 1,020 $1,520 8-42 PROBLEM 8-4 (Continued) (3) Average cost. Cost of Part X available. Date of Invoice No. Units April 1 April 4 April 11 April 18 April 26 April 30 Total Available 100 400 300 200 500 200 1,700 Unit Cost $5. 00 5. 10 5. 30 5. 35 5. 60 5. 80 Total Cost $ 500 2,040 1,590 1,070 2,800 1,160 $9,160 Average cost per unit = $ 9,160 ? 1,700 = $5. 39. Inventory, April 30 = 300 X $5. 39 = $1,617. (b) Assuming costs are computed for each withdrawal: (1) First-in, first out. The inventory would be the same in amount as in part (a), $1,720. 8-43 PROBLEM 8-4 (Continued) (2) Last-in, first-out. Purchased Date April 1 April 4 April 5 April 11 300 5. 30 No. of units 100 400 Unit cost $5. 00 5. 10 300 $5. 10 No. of units Sold Unit cost No. of units 100 100 400 100 100 100 100 300 April 12 200 5. 30 100 100 100 April 18 200 5. 35 100 100 100 200 April 26 500 5. 60 100 100 100 200 500 April 27 800 500 @ 200 @ 100 @ April 28 April 30 200 5. 80 100 5. 60 5. 35 5. 30 5. 10 100 100 100 100 200 5. 00 5. 10 5. 00 5. 00 5. 80 1,010 500 1,660 Balance* Unit cost $5. 00 5. 00 5. 10 5. 00 5. 10 5. 00 5. 10 5. 30 5. 00 5. 10 5. 30 5. 00 5. 10 5. 30 5. 35 5. 00 5. 10 5. 30 5. 35 5. 60 5,410 2,610 1,540 2,600 Amount $ 500 2,540 1,010 Inventory April 30 is $1,660. *The balance on hand is listed in detail after each transaction. 8-44 PROBLEM 8-4 (Continued) (3) Average cost. Purchased Date April 1 April 4 April 5 April 11 April 12 April 18 April 26 April 27 April 28 April 30 200 5. 80 200 500 5. 35 5. 60 800 100 5. 4336 5. 4336 300 5. 30 200 5. 2120 No. of units 100 400 Unit cost $5. 00 5. 10 300 $5. 0800 No. of units Sold Unit cost No. of units 100 500 200 500 300 500 1,000 200 100 300 Balance Unit cost* $5. 0000 5. 0800 5. 0800 5. 2120 5. 2120 5. 2672 5. 4336 5. 4336 5. 4336 5. 6779 Amount $ 500. 00 2,540. 00 1,016. 00 2,606. 00 1,563. 60 2,633. 60 5,433. 0 1,086. 72 543. 36 1,703. 36 Inventory April 30 is $1,703. *Four decimal places are used to minimize rounding errors. 8-45 PROBLEM 8-5 (a) Assuming costs are not computed for each withdrawal (units received, 5,600, minus units issued, 4,700, equals ending inventory at 900 units): (1) First-in, first-out. Date of Invoice No. Units Jan. 28 900 Unit Cost $3. 60 To tal Cost $3,240 (2) Last-in, first-out. Date of Invoice No. Units Jan. 2 (3) 900 Unit Cost $3. 00 Total Cost $2,700 Average cost. Cost of goods available: Date of Invoice No. Units Jan. 2 Jan. 10 Jan. 18 Jan. 23 Jan. 28 Total Available 1,200 600 1,000 1,300 1,500 5,600 Unit Cost $3. 00 3. 20 3. 30 3. 40 3. 60 Total Cost $ 3,600 1,920 3,300 4,420 5,400 $18,640 Average cost per unit = $18,640 ? 5,600 = $ 3. 33 Cost of inventory Jan. 31 = 900 X $3. 33 = $2,997 (b) Assuming costs are computed at the time of each withdrawal: Under FIFO- Yes. The amount shown as ending inventory would be the same as in (a) above. In each case the units on hand would be assumed to be part of those purchased on Jan. 28. Under LIFO- No. During the month the available balance dropped below the ending inventory quantity so that the layers of oldest costs were partially liquidated during the month. 8-46 PROBLEM 8-5 (Continued) Under Average Cost- No. A new average cost would be computed each time a withdrawal was made instead of only once for all items purchased during the year. The calculations to determine the inventory on this basis are given below. (1) First-in, first-out. The inventory would be the same in amount as in part (a), $3,240. Last-in, first-out. Received Date Jan. 2 Jan. 7 Jan. 10 Jan. 13 Jan. 18 1,000 3. 30 600 3. 20 500 300 3. 20 3. 30 No. of units 1,200 Unit cost $3. 00 700 $3. 00 Issued No. of units Unit cost No. of units 1,200 500 500 600 500 100 500 100 700 Jan. 20 700 100 300 Jan. 23 Jan. 26 Jan. 28 1,500 3. 0 1,300 3. 40 800 3. 40 3. 30 3. 20 3. 00 200 200 1,300 200 500 200 500 1,500 Jan. 31 1,300 3. 60 200 500 200 3. 00 3. 00 3. 40 3. 00 3. 40 3. 00 3. 40 3. 60 3. 00 3. 40 3. 60 3,020 7,700 600 5,020 2,300 Balance Unit cost* $3. 00 3. 00 3. 00 3. 20 3. 00 3. 20 3. 00 3. 20 3. 30 4,130 Amount $3,600 1,500 3,420 1,820 (2) Inventory, January 31 is $3,020. 8-47 PROBLEM 8-5 (Continued) (3) Average cost. Received Date Jan. 2 Jan. 7 Jan. 10 Jan. 13 Jan. 18 Jan. 20 Jan. 23 Jan. 26 Jan. 28 Jan. 31 1,500 3. 60 1,300 3. 5291 1,300 3. 40 800 3. 3773 1,000 3. 30 600 3. 20 500 300 1,100 3. 1091 3. 2281 3. 2281 No. of units 1,200 Unit cost $3. 0 700 $3. 0000 Issued No. of units Unit cost No. of units 1,200 500 1,100 600 1,300 200 1,500 700 2,200 900 Balance Unit cost* $3. 0000 3. 0000 3. 1091 3. 1091 3. 2281 3. 2281 3. 3773 3. 3773 3. 5291 3. 5291 Amount $3,600 1,500 3,420 1,865 4,197 646 5,066 2,364 7,764 3,176 Inventory, January 31 is $3,176. *Four decimal places are used to minimize rounding errors. 8-48 PROBLEM 8-6 (a) Beginning inventory Purchases (2,000 + 3,000) Units available for sale Sales (2,500 + 2,000) Goods on hand Periodic FIFO 1,000 X $12 = 2,000 X $18 = 1,500 X $23 = 4,500 1,000 5,000 6,000 4,500 1,500 $12,000 36,000 34,500 $82,500 (b) Perpetual FIFO Same as periodic: Periodic LIFO 3,000 X $23 = 1,500 X $18 = 4,500 Perpetual LIFO Purchased $82,500 (c) $69,000 27,000 $96,000 (d) Date 1/1 2/4 2/20 4/2 11/4 Sold Balance 1,000 X $12 = } $12,000 $48,000 2,000 X $18 = $36,000 2,000 X $18 500 X $12 3,000 X $23 = $69,000 2,000 X $23 = $46,000 ______ $88,000 1,000 X $12 2,000 X $18 } $42,000 500 X $12 500 X $12 3,000 X $23 500 X $12 1,000 X $23 = } } $ 6,000 $75,000 $29,000 8-49 PROBLEM 8-6 (Continued) (e) Periodic weighted-average 1,000 X $12 = $ 12,000 2,000 X $18 = 36,000 3,000 X $23 = 69,000 $117,000 ? 6,000 = $19. 50 4,500 X $19. 50 $87,750 (f) Perpetual moving average Date 1/1 2/4 2/20 4/2 11/4 3,000 X $23 = $69,000 2,000 X $22 = 44,000 $84,000 a Purchased Sold Balance 1,000 X $12 = $12,000 2,000 X $18 = $36,000 2,500 X $16 = $40,000 3,000 X $16 = 500 X $16 = 3,500 X $22 = 1,500 X $22 = a 48,000 8,000 77,000 33,000 500 X $16 = $ 8,000 3,000 X $23 = 69,000 3,500 $77,000 ($77,000 ? 3,500 = $22) 8-50 PROBLEM 8-7 The accounts in the 2008 financial statements which would be affected by a change to LIFO and the new amount for each of the accounts are as follows: Account Cash Inventory Retained earnings Cost of goods sold Income taxes New amount for 2008 $165,600 120,000 215,600 810,000 94,400 1) (2) (3) (4) (5) The calculations for both 2007 and 2008 to support the conversion to LIFO are presented below. Income for the Years Ended Sales Less: Cost of goods sold Other expenses Income before taxes Income taxes (40%) Net income Cost of Good Sold and Ending Inventory for the Years Ended Beginning inventory Purchases Cost of goods available Ending inventory Cost of goods sold Determination of Cash at Income taxes under FIFO Income taxes as calculated under LIFO Increase in cash Adjust cash at 12/31/08 for 2007 tax difference Total increase in cash Cash balance under FIFO Cash balance under LIFO 40,000 X $3. 00) (150,000 X $3. 50) (40,000 X $3. 00) 12/31/07 $900,000 525,000 205,000 730,000 170,000 68,000 $102,000 12/31/08 $1,350,000 810,000 304,000 1,114,000 236,000 94,400 $ 141,600 12/31/07 $120,000 525,000 645,000 120,000 $525,000 12/31/07 $ 76,000 68,000 8,000 - 8,000 130,000 $138,000 8-51 (40,000 X $3. 00) (180,000 X $4. 50) (40,000 X $3. 00) 12/31/08 $120,000 810,000 930,000 120,000 $810,000 12/31/08 $110,400 94,400 16,000 8,000 24,000 141,600 $165,600 PROBLEM 8-7 (Continued) Determination of Retained Earnings at Net income under FIFO Net income under LIFO Reduction in retained earnings Adjust retained earnings at 12/31/08 for 2007 reduction Total reduction in retained earnings Retained earnings under FIFO Retained earnings under LIFO 12/31/07 $114,000 102,000 12,000 - 12,000 200,000 $188,000 12/31/08 $165,600 141,600 24,000 12,000 36,000 251,600 $215,600 8-52 PROBLEM 8-8 (a) 1. Ending inventory in units Portable 6,000 + 15,000 – 14,000 = Midsize 8,000 + 20,000 – 24,000 = Flat-screen 3,000 + 10,000 – 6,000 = 7,000 4,000 7,000 18,000 2. Ending inventory at current cost Portable 7,000 X $120 = Midsize 4,000 X $300 Flat-screen 7,000 X $460 = $ 840,000 1,200,000 3,220,000 $5,260,000 3. Ending inventory at base-year cost Portable 7,000 X $100 = Midsize 4,000 X $250 = Flat-screen 7,000 X $400 = $ 700,000 1,000,000 2,800,000 $4,500,000 4. Price index $5,260,000 ? $4,500,000 = 1. 1689 Ending inventory $3,800,000 X 1. 0000 = 700,000* X 1. 168 9 = *($4,500,000 – $3,800,000 = $700,000) 5. $3,800,000 818,230 $4,618,230 6. Cost of goods sold Beginning inventory Purchases [(15,000 X $120) + (20,000 X $300) + (10,000 X $460)] Cost of goods available Ending inventory Cost of goods sold 8-53 $ 3,800,000 2,400,000 16,200,000 4,618,230 $11,581,770 PROBLEM 8-8 (Continued) 7. Gross profit Sales [(14,000 X $150) + (24,000 X $405) + (6,000 X $600)] Cost of goods sold Gross profit $15,420,000 11,581,770 $ 3,838,230 (b) 1. Ending inventory at current cost restated to base cost Portable $ 840,000 ? 1. 20 = $ 700,000 Midsize 1,200,000 ? 1. 20 = $1,000,000 Flat-screen 3,220,000 ? 1. 15 = $2,800,000 Ending inventory Portable $ 600,000 X 1. 00 = 100,000 X 1. 20 = Midsize 1,000,000 X 1. 00 = Flat-screen 1,200,000 X 1. 00 = 1,600,000 X 1. 15 = 2. $ 600,000 120,000 1,000,000 1,200,000 1,840,000 $4,760,000 3. Cost of good sold Cost of good available Ending inventory Cost of goods sold Gross profit Sales Cost of goods sold Gross profit $16,200,000 4,760,000 $11,440,000 4. $15,420,000 11,440,000 $ 3,980,000 8-54 PROBLEM 8-9 (a) Adis Abeba Wholesalers Inc. Computation of Internal Conversion Price Index for Inventory Pool No. 1 Double Extension Method 2006 $595,000 234,000 $829,000 2007 $520,000 320,000 $840,000 Current inventory at current-year cost Product A Product B Current inventory at base cost Product A Product B 17,000 X $35 = 9,000 X $26 = 13,000 X $40 = 10,000 X $32 = 17,000 X $30 = 9,000 X $25 = 510,000 225,000 $735,000 13,000 X $30 = 10,000 X $25 = $390,000 250,000 $640,000 Conversion price index $829,000 ? $735,000 = 1. 13 $840,000 ? $640,000 = 1. 31 (b) Adis Abeba Wholesalers Inc. Computation of Inventory Amounts under Dollar-Value LIFO Method for Inventory Pool No. 1 at December 31, 2006 and 2007 Current Inventory at base cost Conversion price index 1. 00 1. 13 (a) Inventory at LIFO cost $525,000 237,300 $762,300 December 31, 2006 Base inventory 2006 layer ($735,000 – $525,000) Total December 31, 2007 Base inventory 2006 layer (remaining) Total (a) (b) $525,000 210,000 $735,000 (a) $525,000 115,000 $640,000 b) (a) 1. 00 1. 13 (a) $525,000 129,950 $654,950 Per schedule for instruction (a). After liquidation of $95,000 base cost ($735,000 – $640,000). 8-55 PROBLEM 8-10 Base-Year Cost December 31, 2005 January 1, 2005, base December 31, 2005, layer $45,000 11,000 $56,000 Index % 100 115* Dollar-Value LIFO $45,000 12,650 $57,650 December 31, 2006 January 1, 2005, base December 31, 2005, layer December 31, 2006, layer $45,000 11,000 12,400 $68,400 100 115 128** $45,000 12,650 15,872 $73,522 December 31, 2007 January 1, 2005, base December 31, 2005, layer December 31, 2006, layer December 31, 2007, layer 45,000 11,000 12,400 1,600 $70,000 100 115 128 130*** $45,000 12,650 15,872 2,080 $75,602 *$64,500 ? $56,000 **$87,300 ? $68,400 ***$90,800 ? $70 ,000 8-56 PROBLEM 8-11 (a) Schedule A A Current $ 2003 2004 2005 2006 2007 2008 $ 80,000 115,500 108,000 131,300 154,000 174,000 B Price Index 1. 00 1. 05 1. 20 1. 30 1. 40 1. 45 C Base-Year $ $ 80,000 110,000 90,000 101,000 110,000 120,000 D Change from Prior Year - $+30,000 (20,000) +11,000 +9,000 +10,000 Schedule B Ending Inventory-Dollar-Value LIFO: 2003 2004 $ 80,000 $ 80,000 31,500 $111,500 $ 80,000 10,500 $ 90,500 $ 80,000 10,500 14,300 $104,800 8-57 80,000 @ $1. 00 = 30,000 @ 1. 05 = $80,000 @ 1. 00 = 10,000 @ 1. 05 = 2007 $80,000 @ $1. 00 = 10,000 @ 1. 05 = 11,000 @ 1. 30 = 9,000 @ 1. 40 = 2008 $80,000 @ 1. 00 = 10,000 @ 1. 05 = 11,000 @ 1. 30 = 9,000 @ 1. 40 = 10,000 @ 1. 45 = $ 80,000 10,500 14,300 12,600 $117,400 $ 80,000 10,500 14,300 12,600 14,500 $131,900 2005 2006 $80,000 @ 1. 00 = 10,000 @ 1. 05 = 11,000