Value of closing inventory using the first-in-first-out (FIFO) methodValue of issues to production using the first-in-first-out (FIFO) methodValue of closing inventory using the weighted average cost method INFORMATIONThe following transactions of Gem Manufacturers took place during August 2022 in respect of a componentused in production:Aug01 Opening inventory11171831Purchased from a supplierPurchased from a supplierReturned to the supplier (see 17 August)Issues to production during August1 000 units at R20 per unit3 000 units at R21 per unit1 800 units at R22 per unit800 units3 800 units

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Description: Value of closing inventory using the first-in-first-out (FIFO) methodValue of issues to production using the first-in-first-out (FIFO) methodValue of closing inventory using the weighted average cost method INFORMATIONThe following transactions of Ge

The first in first out method refers to selling the first purchases before the second. It means when…

Business

Accounting

Value of closing inventory using the first-in-first-out (FIFO) method Value of issues to production using the first-in-first-out (FIFO) method Value of closing inventory using the weighted average cost method

Value of closing inventory using the first-in-first-out (FIFO) method Value of issues to production using the first-in-first-out (FIFO) method Value of closing inventory using the weighted average cost method

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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Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.
What factors might impact on the management’s selection of an inventory cost flow assumption? In your answer you need to provide explanation on what factors could impact on a manager to choose FIFO, LIFO or the average cost method. In your answer you may want to refer to issues such as the impact of various cost flow assumptions on the income statement or the statement of financial position. List four factors in your answer
Under which inventory cost flow assumption is the cost of the most recent purchase matched first with sales revenues? Select one: A. FIFO B. Weighted average cost C. LIFO
FIFO, Average cost, and LIFO are often used for inventory valuation purposes. Compare these methods and discuss the effects of each method in the determination of income and asset management
A method of inventory valuation wherein each particular item in the ending inventory isvalued on the basis of the replacement price, in the volume in which they are usuallypurchased or produced by the a. Moving average inventory method.b. Market inventory method.c. Elapsed time inventory method.d. Perpetual inventory method.
The costs of ending inventory is similar under both periodic and perpetual inventory system if _________________ method is used. a. first-in, first-out (FIFO) b. standard cost c. weighted average d. last-in, first-out (LIFO)
When is ending inventory written down below its acquisition cost on the balance sheet? Select one: A. When units are damaged, physically deteriorated, or obsolete B. When the inventory's replacement cost exceeds its acquisition cost C. When the inventory's replacement cost is below its acquisition cost D. Both A and C
In order to get the lowest profits possible in periods of rising inventory costs, the company should use which of the following inventory costing methods? Group of answer choices Average cost Specific identification FIFO LIFO
Lower-of-cost-or-market method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Commodity InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) JFW1 78 $58 $55 SAW9 148 28 33