22. Given the following information: LO4Expected demand during a lead time = 600 kgStandard deviation of demand during a lead time = 52 kgDemand during a lead time is distributed Normally.Acceptable stockout risk during a lead time = 4 percenta. What amount of safety stock is appropriate?b. At what level of inventory should this item be reordered?

Given:Expected demand during a lead time = 600 kgStandard deviation of demand during a lead time =…

Answered: 22. Given the following information:…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6MC: When would using the FIFO inventory costing method produce higher inventory account balances than...

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When would using the FIFO inventory costing method produce higher inventory account balancesthan the LIFO method would?A. inflationary timesB. deflationary timesC. alwaysD. never
Which of the following is false? Question 33 options: a) Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period. b) Inventory ratio is equal to the number of times inventory was completely purchased and sold (turned over) during the period. c) Higher days' sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days d) Days' sales in inventory is equal to the average number of days it takes to sell inventory.
In a period of rising prices, the inventory method which tends to give the highest reported inventory is A) FIFO B) Moving Average C) LIFO D) Weighted-average
Required: a. Explain why "better matching" occurs with LIFO. b. What is the impact on the carrying value of inventory in the balance sheet when LIFO rather than FIFO is used during periods of inflation?
Please correct answer and don't use hend raiting
13.In periods of rising prices, which is an advantage of using the LIFO inventory costing method? a. Ending inventory will include latest (most recent) costs and thus be more realistic. b. Cost of goods sold will include latest (most recent) costs and thus will be more realistic. C. Net income will be the highest and thus reflect the prosperity of the company. d. Phantom profits are reported. 14 In a period of increasing prices, which inventory flow assumption will result in the lowest
In a period of deflation (i.e. the per unit cost of inventory purchases decreases over time), which inventory method will produce the highest ending inventory balance for that period assuming not all inventory is sold? a. FIFO b. LIFO c. Moving Average d. All methods would generate the same ending inventory balance.
Which of the following is false regarding the LIFO method of inventory valuation? a. The material issue will be priced at the price of the material that is purchased last. b. Value of closing stock will be the earliest costs c. All the given option d. Value of closing stock will be at recent costs.
During a period of rising inventory prices the LIFO cost flow method will result in higher total assets than FIFO. True or False True False
1.At a time of declining prices, which cost flow assumption will result in the highest ending inventory? A. FIFO B. LIFO C. Weighted average D. Either A or C 2. When the cost of inventory is rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? A. FIFO B. Weighted Average. C. All methods will produce the same amount of cost of goods sold. D. LIFO 200 The inventory records for Raymond Co. reflected the following Beginning Inventory @ May 1 200 units @ $1.00 First Purchase @ May 7 Second Purchase @ May 17 Third Purchase @ May 23 Sales @ May 31 B. $1.15 C. $1.14 D. $1.31 B. $130 C. $324 D. $340 300 units @ $1.10 = 400 units @ $1.20 100 units @ $1.30 = 120 900 units @ $1.50 1350 30 go 3. Determine the weighted average cost per unit for May. A. $1.22 .4.Determine the amount of cost of goods sold assuming the LIFO cost flow method. A. $1,140 B. $1,040 C. $1,000 D. $940 5. Determine the amount of gross margin assuming the FIFO cost flow method. A. $114
Which of the following is false? Select one: a. Day's sales in inventory is equal to the average number of days it takes to sell inventory b. Higher Day's sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days c. Inventory ratio is equal to the number of times inventory was completely purchased and sold (turn over) during the period d. Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period
None

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