Discuss the two (2) components of every Sales dollar, and defend the choice of a business to utilize the LIFO inventory costing system, in a period of rising prices.

Q: AD, Inc. uses the LIFO-lower of cost or market method to value inventory. If the inventory value is…

A: For financial reporting purposes, will value the inventory in accounting at lower prices or on the…

Q: During a period of steadily rising costs, the inventory valuation method that yields the highest…

A: LIFO: Last in First Out- Under LIFO inventory valuation, units purchased last are sold first. As the…

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: The work paper in the year of sale to eliminate unrealized intercompany profit in ending: a. Credit…

A: Inter transaction- It includes those transaction which are incurred within the subsidiary and…

Q: When inventory unit costs are increasing: Group of answer choices a)FIFO will result in higher…

A: FIFO refers to the method of inventory costing where items purchased first are sold first.

Q: Prepare a memorandum containing responses to the following items. a.    Describe the cost flow…

A: a.

Q: If the beginning finished goods inventory (in units) is more than the desired finished goods ending…

A: Total production required is calculated as sum of forecasted unit sales and planned finished goods…

Q: Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________…

A: Lets understand the basics. There are various inventory methods are followed for calculating ending…

Q: ethod to use or are there other determinants that are more important in your opinion? Provide…

A: FIFO stands for first in first out. It values the inventory on the basis of first costs. The goods…

Q: Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the…

A: Each inventory valuation methods possesses its own uniqueness that will affect the financial…

Q: In a period of rising costs, which inventory valuation method would a company likely choose if they…

A: The objective of the question is to identify the inventory valuation method that would result in the…

Q: How do retail companies correctly match expenses with revenue for the period to get an accurate net…

A: The matching principle in accounting is a fundamental principle that requires companies to report an…

Q: During a period of rising inventory costs and stable output prices, describe how net income and…

A: First in first out Method (FIFO) First in first out method is one of the popular method which was…

Q: Which of the following is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: Multiple Choice. Weighted average. LIFO, FIFO, and the weighted-average inventory cost flow methods…

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

Q: Setting a price on perishable items does not include: Group of answer choices A. Calculating a…

A: Perishable products are those products that have a small lifetime (1 or 2 days). The use of…

Q: hen purchase costs regularly rise, the inventory costing method that yields the highest reported net…

A: The inventory can be valued using various methods as LIFO, FIFO, average and specific identification…

Q: What does a very high inventory turnover ratio signify? Please provide your own example to explain…

A: Inventory turnover ratio is one of the efficiency ratio, which says and calculates how many times…

Q: 1. Explain the effect of each inventory cost flow method on the company's net income 2. Recommed one…

A: There are primarily four type of inventory cost method- 1. First in first out method2. Last in first…

Q: During periods of rising costs, which inventory costing method produces the highest gross profit?

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: I need help

A: Step 1: Understand the Retail Inventory MethodThe retail inventory method is used to estimate the…

Q: In order to get the lowest profits possible in periods of rising inventory costs, the company should…

A: Inventory costing is an accounting concept that has direct consequence on company’s gross profit and…

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.