9-XYZ Company purchased Inventory on 1st January, 2018 worth OMR 10,000. The company decided to issue the inventory under LIF0 method. But in the year 2020 the company decided to change the method to FIFO as per the suggestion from Production Manager as a result of which the profit after tax of the company is declined by OMR 1,000. Name the variation in the profit due to change in the method of inventory valuation. O a. Inherent risk O b. Detection risk O c. Control risk O d. Audit Risk

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Q: Problem 8-16 (Algo) Dollar-value LIFO; solving for unknowns [LO8-8] At the beginning of 2024, a…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. For Dollar value…

Q: Problem 8-9 (Algo) LIFO liquidation [LO8-4, 8-6] A company reports inventory and cost of goods sold…

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Q: Question Of Accounting subject

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A: Given: - Understated 12/31/22 inventory by $150 Overstated 12/31/22 inventory by $450

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A: Basic Concept of Valuation of Inventory

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Q: ! Required information Problem 9-7 (Algo) Retail inventory method; conventional and LIFO [LO9-3,…

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Q: None

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Q: Exercise 20-1 (Algo) Change in principle; change in inventory methods [LO20-2] During 2019 (its…

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Q: Sheridan Company began operations on January 1, 2023, and uses the average-cost method of pricing…

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Q: 1. Details of OCC Corp inventory balance and Cost of Good Sold are given below: $ Million 2022 2021…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.