What critical assumptions has TESLA made to value inventory? Does TESLA use FIFO or LIFO? Explain what is LCM (the lower of cost or market) and how this may impact inventory every year. During the years ended December 31, 2019, 2018 and 2017, we recorded write-downsof $138 million, $78 million and $124 million, respectively, in cost of revenues.Our inventory consisted of the following (in $millions):8DecemberDecember31, 201931, 2018Raw materials1,428932Work in processFinished goodsService parts3622971,3561,581406303Total3,5523,113

Name: What critical assumptions has TESLA made to value inventory? Does TESL
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: What critical assumptions has TESLA made to value inventory? Does TESLA use FIFO or LIFO? Explain what is LCM (the lower of cost or market) and how this may impact inventory every year. During the years ended December 31, 2019, 2018 and 2017, we reco

Inventory Valuation There are different method which are adopted in the valuation of the inventory.…

Answered: What critical assumptions has TESLA…

Business

Accounting

What critical assumptions has TESLA made to value inventory? Does TESLA use FIFO or LIFO? Explain what is LCM (the lower of cost or market) and how this may impact inventory every year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which inventory valuation approach comes closest to having COGS represent the costs the firm most recently paid to acquire inventory? O Average cost O FIFO O Not enough information to answer O LIFO
Can you help me with this question? Thank u so much!
1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.
It is discovered in 2018 that ending inventory in 2016 was understated. What is the effect of the understatementon the following: 2016: Cost of goods soldNet incomeEnding retained earnings2017: Net purchasesCost of goods soldNet incomeEnding retained earnings
SKIP THIS IF YOU HAVE ALREADY DONE THIS. THANK YOU
Please explain in detail
None
This exercise tests your understanding of the four inventory methods. List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising. 1. Results in a cost of ending inventory that is close to the current cost of replacing the inventory 2. Used to account for automobiles, jewelry, and art objects 3. Generally associated with saving income taxes 4. Provides a middle-ground measure of ending inventory and cost of goods sold 5. Maximizes reported income 6. Enables a company to keep reported income from dropping lower by liquidating older layers of inventory (assume rising prices) 7. Writes inventory down when its net realizable value drops below its historical cost 8. Results in an old measure of the cost of ending inventory 9. Matches the most current cost of goods sold against sales revenue 10. Enables a company to buy high-cost inventory at year-end and thereby decrease reported income and income tax
Kingbird Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Kingbird's records. Price Ending Inventory Date Index at Base Prices Ending Inventory at Dollar-Value LIFO December 31, 2025 105 $92,700 $86,600 December 31, 2026 ? 97,700 92,150 Calculate the index used for 2026 that yielded the above results. Index used for 2026
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
I need help with this hw problem pls. Thank you!
piotua incone as of year-end 2015? Explain. Assume GE has a 35% income tax rate. As of the 2015 year-end, how much has GE saved in by choosing LIFO over FIFO method for costing inventory? Has the use of LIFO i creased GE's cumulative taxes paid? d increased or de e. What effect has the use of LIFO inventory costing had on GE's pretax income and tax expense 2015 only (assume a 35% income tax rate)? E6-25) Computing Cost of Sales and Ending Inventory Howell Company has the following financial records for the current period. Units Unit Cost Beginning inventory . .. 150 $100 96 92 90 #2 500 Ending inventory is 350 units. Compute the ending inventory and the cost of goods sold for the current period using (a) first-in, first-out, (b) average cost, and (c) last-in, first-out. Analyzing an Inventory Footnote Disclosure The inventory footnote from Deere & Company's 2015 10-K follows. E6-26. Inventories Most inventories owned by Deere& Company and its U.S equipment subsidiar- es are valued at…