Question Why does the application of the FIFO, Average cost, SpecificIdentification, and LIFO cost flow assumptions produce differentamounts for the cost of ending inventory and the cost of goodssold?

Q: Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending…

A: Sales = (50 units x $120) + (25 units x $125) = $6000 + $3125 = $9125 Cost of Goods Available = (100…

Q: The three most common inventory cost flow methods are a.FIFO, LIFO, and weighted average cost.…

A: The inventory valuation method is used by the management to evaluate the closing inventory and cost…

Q: your own words, what are the primary differences between impact analysis and inventory analysis?

A: The inventory analysis an important part of decision making because it is associated with many…

Q: Which of these occur when the costs of goods sold exceeds the costs of goods manufactured? Group of…

A: The question is asking about the impact on inventory when the cost of goods sold (COGS) is greater…

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: What is inventory turnover Ratio? Explain its significance.

A: Explain the meaning of inventory turnover ratio and its significance:Inventory turnover ratio:…

Q: When inventory is purchased in a basket purchase, several steps are required. Which of the following…

A: A basket purchase is a term used to indicate when two or more items are purchased together for a…

Q: Should inventory be measured initially at its market value or at cost?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Define inventory shrinkage.

A:

Q: What is meant by the term gross margin? Describe costing inventory using first-in, first-out.…

A: What is meant by the term gross margin?

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Absorption costing also written as full costing. Under this method, all costs are considered in…

Q: Briefly explain the usefulness of the inventory figure resulting from the application of lower of…

A: Net Realizable Value(NRV) refers to the inventory value which a business entity can realize from…

Q: For which of the following cost flow methods does generally accepted accounting principles require…

A: Ans. In case of Inventories, it is generally accepted accounting principles is to measure at cost or…

Q: What impact has a JIT inventory system on operating income?

A: JIT or just-in-time is a stock administration technique in which material, labor and products (to be…

Q: What's the difference between the cost to inventory and the cost of goods sold?

A: Cost of inventory refers to the cost of goods purchased. It is those costs which includes cost of…

Q: Multiple Choice. Weighted average. LIFO, FIFO, and the weighted-average inventory cost flow methods…

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

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Lets understand the basics. Generally one of the two costing methods are followed by entities to…

Q: factors affect inventory turnover ratio

A: The inventory turnover ratio is a financial ratio. It is the rate at which a company is managing its…

Q: the lower cost or market is a method of inventory valuation true or false?

A: Inventory valuation is the accounting process in which the monetary value assigned to the unsold…

Q: Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of…

A: In periods of rising prices, the method that would generally result in the same unit cost for…

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.