Callaway Golf Company- Manufacturing Inventory
Answers to Case
a. The costs accepted to be in the raw abstracts annual are costs of abstracts such as wood, iron, plastic, and/or optic cilia that accept yet to be placed in production. The costs accepted to be in the assignment in action annual are the bulk of abstracts placed in assembly additional the action and allocated aerial activated so far. The costs accepted to be in the accomplished appurtenances annual are the materials, labor, and allocated aerial incurred to accomplish the accomplished articles on hand.
b. Inventories are net of an estimated allowance for anachronistic or unmarketable inventory.
c. i. The Assets for anachronistic inventories’ annual does not arise on Callaway’s banking statements because it has already been subtracted off the annual account. The gross bulk of annual at the end of 2006 is $247,795. 00, and at the end of 2007 is $232,872. 00 Of the $20,129. 00 of the assets for anachronistic inventory, $6,537. 90, is attributable to raw abstracts inventory, 154. 99 is attributable to work-in-process inventory, and $13,436. 11 to accomplished appurtenances inventory.
d. JE to almanac action in assets for anachronistic annual during 2007 (in thousands)
Cost of Sales $ 12,182. 00
Provision for anachronistic annual 12,182. 00
Provision for anachronistic annual 9,368. 00
Inventory 9,368. 00
e. i. The bulk of accomplished appurtenances awash in 2007 was $619,186. 00 The bulk of accomplished appurtenances transferred from work-in-process in 2007 was $247,109
iii. The bulk of raw abstracts transferred to work-in-process in 2007 was $90,982. 00 The bulk of raw abstracts purchased during 2007 was $87,369. 00
v. The bulk of banknote disbursed for raw-material purchases during 2007 was $54,350. 00. ($95,297. 00-$40,947. 00)
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