Prepare a memorandum containing responses to the following items. a.    Describe the cost flow assumptions used in average-cost, FIFO, and LIFO methods of inventory valuation. b.    Distinguish between weighted-average-cost and moving-average-cost for inventory costing purposes. c.    Identify the effects on both the balance sheet and the income statement of using the LIFO method instead of the FIFO method for inventory costing purposes over a substantial time period when purchase prices of inventoriable items are rising. State why these effects take place.

Q: complete the following table which compares the effects of LIFO,  FIFO and weighted-average…

A: Inventory valuation in costing is done using mainly three methods namely FIFO, LIFO and weighted…

Q: Under what circumstances is the relative sales value an appropriate basis for determining the price…

A:

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

A: Inventory calculation involves determining the value of the items or products that a company holds…

Q: The inventory valuation method that has the advantages of assigning an amount to inventory on the…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: escribe costing inventory using last-in, first-out. Address the different treatment, if any, that…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Which of the following, if compared to the other methods for valuing inventory, has a material…

A: The products and materials that a company keeps in stock to either resell them or utilize them to…

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: Describe costing inventory using first-in, first-out. Address the different treatment, if any, that…

A: Definition:  First-in-First-Out (FIFO): In the First-in-First-Out method, the first purchased items…

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: If the inventory is valued at cost and the price level is steadily increasing, which type of…

A: Under FIFO, goods that are purchased initially are sold first, however, under LIFO it is assumed…

Q: 1.What are the three primary inventory cost flow assumptions? 2. How is cost of goods sold…

A: Since you have posted multiple questions, we will do the first one for you. To get the other…

Q: After companies apply one of the four costing methods, Inventory is reviewed to ensure it is…

A: The cost of inventory is the amount spent to acquire or produce it, including expenses such as…

Q: Rank the following inventory methods in terms of their record-keeping cost.  For answer choices, the…

A: LIFO stands for the last in first out, it is a method of valuing the inventory which the company is…

Q: Put the inventory valuation methods in order from which one yields the highest to which one yields…

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

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: The cost method that will yield an ending inventory value that is somewhere between possible high…

A: Inventory valuation has 4 Methods - 1. FIFO 2. LIFO 3. Weighted Average 4. Specific Identification…

Q: The table below lists financial statement items that may be affected by the use of either the FIFO…

A: Rising costs is the situation when the prices keeps on increasing with time.

Q: Required information [The following information applies to the questions displayed below.] A company…

A: Evaluating Net Realizable Value is essential for proper financial reporting because it prevents…

Q: Required: 1. Complete the…

A: "Since you have posted multiple questions with multiple sub parts,we will provide the solution only…

Q: The most common approach to implementing the lower of cost or market rule for inventory valuation is…

A: Inventory means the stock of goods in which the businessmen deals. Inventory is always valued at…

Q: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: following is accounted for prospectively? Change in reporting entity. Change in…

A: A change in an estimate is accounted for prospectively.

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.