All else constant, identify the effect of each of the following on the level of inventory: 1.Decrease in DIH 2.Increase in daily CGS 3.Increase in DIH and decrease in CGS. (Be specific please)

Q: Assume that a firm separately determined inventory under FIFO and LIFO and then compared the…

A: FIFO (First in first out) method is an accounting method in which inventory purchased first should…

Q: Match the inventory method with its related characteristic. Assume a period of rising prices in all…

A: The objective of the question is to match the inventory valuation methods (LIFO, FIFO, Weighted…

Q: d. days in inventory e. inventory turn over f. average collection period

A: Days in inventory : Days in inventory=Average inventoryCost of goods sold×100=187+23824,060×100=5.24…

Q: Which of the following variations of the reail inventory method would generally result in the lowest…

A: FIFO is a method used to value inventories. In First-In-First-Out (FIFO) method the cost of the…

Q: ost per unit of purchases over a period r decrease in purchases in relation to the

A: Data is unprocessed facts or figures that are not organzied.Information is processed and organized…

Q: Calculate the inventory turnover ratio and the average collection period. 1. 1.5 2. 1.5 3. 2.93 4.…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: In a period of rising prices, the inventory method which tends to give the highest reported…

A: During a period of rising prices FIFO Method is expected to give highest reported inventory as in…

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Purchase 1 2 3 Glasgow Enterprises started the period with 80 units in beginning inventory that cost…

A: Under the weighted average inventory method, weighted average cost per unit is calculated by…

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimated…

A: Given: Merchandise inventory = $ 5,200 Inventory on June 30, 2018 = $ 4,900 Amount of Sold…

Q: For each item below, indicate whether FIFO or LIFO will generally result in a higher reported amount…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: 10.In periods of rising prices (inflation), the use of which of the following inventory cost flow…

A: Under first in first out method, the goods which are brought into the inventory first are sold first…

Q: Which of the following variations of the retail inventory method would generally result in the…

A: Rising prices basically means the situation where the prices of inventory keep on rising with each…

Q: In a period of rising prices, the inventory cost allocation method that tends to result in the…

A: In the period of rising prices, method resulting in highest net income would be the method under…

Q: See the picture for other details. choose the letter of answer Using perpetual inventory system…

A: Perpetual inventory system is an inventory system in which all sales and purchases are recorded on…

Q: Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: Choose Denominator:…

A: Inventory Turnover =COGS/Average Inventory Inventory Turnover is Ratio that measure how many times…

Q: During the period of increasing prices,

A: FIFO states that the inventory purchased first would be sold first. In the case of rising prices, in…

Q: Define days' sales in inventory (what do the results mean). Provide an example

A: Days sales in inventory means how much days company will take to convert its inventory into sales.…

Q: 1)Journalize the above transactions. 2)Journalize the adjusting entries.

A: Journal entry is used to record business transactions in the books of the company. Every entry have…

Q: During a period of falling prices, which of the following inventory methods generally results in the…

A: There are 3 types of methods for inventory valuation: a.FIFO b. LIFO c. Weighted average FIFO: In…

Q: 17. Models of inventory systems frequently consider the relationships among a beginning inventory, a…

A: The objective of the question is to establish a mathematical relationship between the beginning…

Q: The answer is d, ex In a period of rising prices, the inventory method which tends to report the…

A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

Q: 1.At a time of declining prices, which cost flow assumption will result in inventory? A. FIFO B.…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Practice AA Company uses a periodic inventory system. At the end of the annual accounting period the…

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

Q: Which cost flow assumption generally results in the highest reported amount of net income in periods…

A: Solution: Under FIFO method, inventory is valued at latest purchase cost. Therefore in period of…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

A: Lower-of-cost-or-market value:The lower-of-cost-or-market value is a method which requires the…

Q: May I ask for a solution and explanation to the problem for a better understanding. Thank you! 20.…

A: Inventory Turnover ratio = Cost of Goods Sold / Average Inventory Average Inventory =[ Opening…

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.