When net realizable value is lower than cost, and the loss method applying the lower-of-cost-and-net-realizable approach of recording the write-down is used, what account is credited? O a. Inventory. Ob. Allowance to Reduce Inventory to NRV. O c. A loss account. O d. Cost of Goods Sold.

Q: n accounting for by-products, when the by-products are sold for more than the estimated sales value,…

A: There are two options available to the entity. The entity can choose either of the following options…

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: 2012; the company sells just one product: Units Unit Cost Beginning Inventory 200 $50 Purchases:…

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

Q: Cost of goods sold is an operating expense. A.True B.False

A: Introduction:- Income statement shows company's income and expenses over a  period of time. Formula…

Q: To hold back unrealized profit in ending inventory, cost of goods sold is decreased. True or False?

A: Unrealized profits in the literal sense means those profits that are not realized yet. Unrealized…

Q: Date Activities Units Acquired at Cost Units Sold at Retail Jan. Beginning inventory Sales... 1 200…

A: The Last-In, First-Out (LIFO) strategy expects that the last unit to show up in stock or later is…

Q: "Market" is defined in the "Lower-of-cost-or-market" rule required to account for FIFO inventory as:…

A: Inventory- Inventory refers to the items which business kept on hand in order to make the money, it…

Q: 2. Compare the lower of cost or net realizable value effect on each amount that was changed on the…

A: FIFO Cost basis of inventory valuation means inventory has been valued on a first-in, first-out…

Q: Which inventory cost flow assumption generally results in the lowest reported amount for cost of…

A: The answer will be FIFO, First-in, first-out i.e. option B.

Q: Problem 6-02A a, b1-b2, c (Part Level Submission) (Video) Glee Distribution markets CDs of the…

A: Under periodic inventory system, the cost of inventory can be valued using LIFO, FIFO and average…

Q: Cost Inventory Ski jackets Quantity Market 15 $120 $100 Skis 20 350 400

A: Formula: Inventory value = Inventory quantity x Cost Inventory value = Inventory quantity x Market

Q: A ____ will cause Cost of Goods Sold to decrease. A. Debit  B. Credit

A: Cost of Goods Sold means Cost involved in making of goods or providing services. Direct Material,…

Q: When valuing inventories at the lower of cost or net realisable value, which one of the following…

A: Consistency- The consistency principle holds that once an accounting principle or method is adopted…

Q: Problem 16: Inventory Costing Method The inventory stock card of Beth Corporation on January 2030 is…

A: There are many methods that are being used for inventory costing and inventory valuation like LIFO,…

Q: Effect of Cost Changes Complete the following table by indicating whether FIFO or LIFO results in…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

Q: Damaged merchandise that can be sold only at prices below cost should be valued at Oa. last-in,…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method…

Q: Compute for the cost of ending inventory and cost of goods sold using: a. FIFO - periodic b.…

A: The following computations are done for Extreme Company.

Q: In a cost-divided income statement, changes in purchased goods (merchandise) must be reported under…

A: Following is the answer to the given question

Q: Current Attempt in Progress Marigold Co. purchased land as a factory site for $432,000. The process…

A: Assets- An asset is purchased or owned by the corporation or individual to gain the benefit of…

Q: Which of the following decreases the cost of inventory purchased? CIRCLE ONE: a. Freight Out b.…

A: Under the perpetual inventory system, the inventory includes the cost of purchases, freight in…

Q: The inventory evaluation method which does not represent the actual ending inventory value is?…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: As inventoriable costs expire, they become a. sales b. cost of goods sold c. operating expenses d.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The process of recording inventory that gives a lower cost of a commodity sold in an income…

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

Q: Which of the following may not result to the amount of cost of sales? a.Net purchases less net…

A: Solution- COGS can be calculated in three steps that culminate in one formula.   Or, to put it…

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: cost of goods sold

A: Option a - Direct wages are part of cost of goods sold Option b - Purchases are included while…

Q: If merchandise inventory is being valued at cost and the price level is decreasing, which of the…

A: Inventory cost is calculated by LIFO, FIFO and average cost method. Under LIFO method, inventory…

Q: a.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO.

A: Solution :

Q: Just One Product (JOP) began operating on June 26 with no inventory on hand. It then made the…

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

Q: Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c.…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Bramble Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June…

A: Introduction:-  The carrying value of products sold within a certain period is known as the cost of…

Q: inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True F

A: Solution: False. The statement that Ending inventory is added to Total Goods Available for Sale when…

Q: In determining inventory's lower of cost or net realizable value, NRV is defined as: Selling Cost…

A: An inventory valuation allows a business to assign a monetary value to the inventory. Inventories…

Q: the economic order quantity model the return on capital that is forgotten when it is invested in…

A: In EOQ model that is economic order quantity we consider the lot  for which there will be overall…

Q: 3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost…

A: Product cost is used in  manufacture of a product. The examples of product cost are: Labor cost ,…