Case ID: 113122
Solution ID: 20663
Words: 1210
Price $ 75

Justin Anson Distillery Inc Case Solution

Case Solution

A distiller builds bourbon generation and wage decreases as a result of bookkeeping routines being used. Inquiries are raised with respect to the treatment of consumptions which can be named generation, stock, or period costs. The important maturing procedure brings up included issues about earlier period restatements and required financing. A revised form of a before case by R.F. Vancil and R.H. Deming.

Excel Calculations

Barrel Cost

Justin Anson Distillery, Inc. Statement of  income

For the year ended June 30, 2011 and 2012

 

All costs

Justin Anson Distillery, Inc. Statement of  income

For the year ended June 30, 2011 and 2012

 

Differences

Effect of changing inventory Calculations

Effect On Balance Sheet

Effect On Income Statement

Questions Covered

Assuming Anson decided to charge barrel costs (but not warehousing and aging costs) to inventory, what 2012 income statement and balance sheet items would change, and what would the new amounts be? (Assume no change in work-in-process inventory.)

If Anson’s suggestion of including all warehousing and aging costs in inventory were accepted, how would the 2012 financial statements be affected? (Assume no change in work-in-process inventory.)

In your opinion, what costs should be included in Anson’s inventory when preparing financial statements to be submitted to Valley National Bank?