Which of the following is correct as it relates to the cost of merchandise inventory? Multiple Choice We can include in merchandise inventory all purchase costs, shipping fees, and duties We can include in merchandise inventory all purchase costs but excluding shipping fees We can include in merchandise inventory all purchase costs but excluding shipping fees and duties None of the choices are correct All of the choices are correct.

Q: Which of the following statements is correct with respect to inventories? The FIFO cost flow…

A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…

Q: hich of the following statements relative to book (perpetual) inventory systems Is false? a. Use of…

A: Answer: Book inventory systems is defined as the inventory system which records inventory based on…

Q: Proponents of the LIFO Inventory cost flow assumption argue that this costing method is superior to…

A: LIFO is one of the inventory methods used to account for inventory. Here the inventory of the…

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

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Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: Under what circumstances would a company need to estimate its inventory? What are the differences…

A: The worth of the items in your inventory at the time of your most recent physical count is the…

Q: Determine which of the following statements about merchandise is correct.

A: Merchandise inventory: Merchandise inventory is the inventory purchased by company for the purpose…

Q: Why does Target feel that the retail inventory method will result in inventory beingvalued at the…

A: LCM (Lower of Cost or Market) approach:   It is an approach that values the inventory at historical…

Q: True or False Merchandise inventory consists of products that a company acquires to resell to…

A: Merchandise inventory refers to inventory held by the company.

Q: The cost flow method that often parallels the actual physical flow of merchandise is the OLIFO…

A: 1. LIFO method: LIFO assumes that the last items purchased are the first ones sold, which may not…

Q: Which of the following statements regarding freight costs is true? Oa. FOB destination means that…

A: The inventory is recorded as current assets in the balance sheet . The inventory is recorded…

Q: What are three methods for estimating stand-alone selling prices of goods and services that normally…

A: The stand-alone selling price refers to the price at which an entity will sell the goods and…

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: I need help with both of these please, I don't understand how to do FIFO, LIFO and weighted average…

A: NOTE :- Since more than one problem is posted I am providing you the answer for first question.…

Q: I need help determining the cost assigned to inventory and the cost of goods sold using FIFO. Some…

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…

Q: Discuss the treatment of freight-in, purchase returns, purchase discounts, normal spoilage, sales…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: The specific identification inventory method should be used when the inventory consists of…

A: Specific identification inventory method: It is a method used to value the inventory. It calculates…

Q: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

Q: Which of the following statements is correct? O Cost of goods sold computed under a periodic system…

A: Lets understand the basics.There are two inventory methods are followed which calculating inventory…

Q: 11. What is the effect on cost of goods sold, gross profit, and net income if ending mer- chandise…

A: Error in inventory recording can be cancelled or we can say nullified within two consecutive…

Q: Please help with correct solution

A: The correct option is C. The retail inventory method provides a method for inventory control and…

Q: Why should one not use a rent-to-own for mer

A: Rent - to- own: Rent-to-own (RTO) stores sell things like articles of furniture and appliances to…

Q: A merchandising business purchases goods for resale. A merchandiser makes a profit by selling goods…

A: Under the FIFO method, the cost of goods sold contains the cost of the earliest purchases. Under the…

Q: Which of the following does NOT correctly describe the specific identification cost formula? This…

A: Specific identification cost formula use to valuation of inventory by tracking each and every item…

Q: Question 10 Inventory costing methods are based on assumptions about: Neither flow of costs or…

A: The selection of an inventory method depends on different factors of the organization, such as the…

Q: Solve this problem with question

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Q: Briefly explain the similarity and difference between the merchandise inventory of a retailer and…

A: Inventory or stock are goods which can be in the form of raw materials, after processing the raw…

Q: You have the following information for Blossom Company Blossoms uses the periodic method of…

A: Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…

Q: Multiple Select Question Select all that apply Which of the costs below would be included in the…

A: Accounting standard says that inventory should be valued at  cost or market which every is…

Q: Which of the following included in the buyer's cost? A. All the descriptions are tight. B. Insurance…

A: Inventory cost refers to the cost that is related to the business associated with the holding…

Q: Both the gross profit method and the retail inventory method provide a way to estimate ending…

A: Gross Profit Method: Under this method, the beginning inventory is added to the net purchases during…

Q: I'm having trouble finding the opening direct material inventory on the cost of goods sold (the very…

A: Cost of good sold measures the direct cost which is incurred of production of any goods and services…