> Exercises For all exercises, assume the perpetual inventory system is used unless stated otherwise. E6-14 Using accounting vocabulary Match the accounting terms with the corresponding definitions. 1. Specific identification a. Treats the oldest inventory purchases as the first units sold. 2. Materiality concept b. Requires that a company report enough information for outsiders to make knowledgeable decisions. 3. Last-in, first-out (LIFO) 4. Conservatism c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory. 5. Consistency principle 6. Weighted-average 7. Disclosure principle d. Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available. B. First-in, first-out (FIFO) e. Principle whose foundation is to exercise caution in reporting financial statement items. f. Treats the most recent/newest purchases as the first units sold. g. Businesses should use the same accounting methods from period to period. h. Principle that states significant items must conform GAAP.

> Exercises For all exercises, assume the perpetual inventory system is used unless stated otherwise. E6-14 Using accounting vocabulary Match the accounting terms with the corresponding definitions. 1. Specific identification a. Treats the oldest inventory purchases as the first units sold. 2. Materiality concept b. Requires that a company report enough information for outsiders to make knowledgeable decisions. 3. Last-in, first-out (LIFO) 4. Conservatism c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory. 5. Consistency principle 6. Weighted-average 7. Disclosure principle d. Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available. B. First-in, first-out (FIFO) e. Principle whose foundation is to exercise caution in reporting financial statement items. f. Treats the most recent/newest purchases as the first units sold. g. Businesses should use the same accounting methods from period to period. h. Principle that states significant items must conform GAAP.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Match each description with the correct term. Goods held for sale by one [Choose ] party although ownership of [Choose ] Consigned goods the goods is retained by another party. Net realizable value Inventory system in which companies manufacture or purchase goods only when needed for use. FOB (free on board) shipping point Dictates that a company use the same accounting principles FOB (free on board) destination and methods from year to year. Consistency concept Freight terms indicating that [ Choose ] ownership of the goods remains with the seller until the goods reach the buyer. Freight terms indicating that [ Choose ] ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller. Net amount that a company [Choose ] expects to realize (receive) from the sale of inventory. Specifically, it is the estimated selling price in the normal course of business, less estimated costs to complete and sell. > >
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On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $77500, it is now January 8, 2024, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system Note: Only relevant items are shown on the inventory listing. # 1 2 Jen & Mink Clothing Inventory Listing December 31, 2023 Inventory Number Inventory Description Quantity (units) Blue jackets. Black pants 7649 10824 104 308 Unit Cost ($) Total Value ($) 24 2,496 5,852 19 Total Inventory $77,500 The following situations have been brought to your attention: a. On January 3, 2024, J&M received a shipment of 104 blue jackets, for $2,496 (Item #7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2023, J&M sold scarves (Item # 5566) to a customer with a sale price of $740 and cost of…
Subject: acounting
What is the inventory system called that continuously discloses the amount of inventory? Group of answer choices physical perpetual retail periodic
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What is the inventory system called that discloses the amount of inventory on hand ONLY at the end of the accounting period when a physical count is taken? Group of answer choices retail physical periodic perpetual
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