Assume that a firm separately determined inventory under fifo and lifo and then compared the results. 1. In each space below, place the correct sign [less than (<), greater="" than=""><), or="" equal="" (=")]" for="" each="" comparison,="" assuming="" periods="" of="" rising=""> a. Lifo inventory                                _________ Fifo Inventory b. Lifo cost of goods sold               _________ Fifo cost of goods sold c. Lifo net income                             _________ Fifo net income d. Lifo income tax                             _________ Fifo income tax 2. Why would management prefer to use lifo over fifo in periods of rising prices?

Q: P3-6 Wogdivorks Gompany deals in furniture.and uses perlodlcinventöry syste transaction…

A: The ending inventory is calculated as difference between number of units available for sale and…

Q: 1.  The lower-of-cost-or-market method can be applied to each item of inventory. each major class…

A: In case of multiple questions, we are allowed to solve only the first question. In case if you want…

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: LIFO reserves: White Rose Company Reported year for analysis, 2013 $ 45,200,000 2013 Net income as…

A: Here income  tax effect  is  given on reduced  inventory reserve

Q: Under which inventory cost flow assumption is the cost of the most recent purchases likely to remain…

A: Inventory valuation methods include: First-in first-out (FIFO) Method  Last-in first-out (LIFO)…

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: Under the lower of cost or market inventory valuation rule, market value of inventory is defined as:…

A: Market value is the price of an item/product prevailing in the market on the given date.

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: Inventory turnover is computed by dividing cost of goods sold by O 2x (ending inventory + beginning…

A:

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: Which of the following inventory cost flow assumptions produces the same ending inventory values…

A: Periodic inventory system is a system where inventory records are updated on a periodic basis but in…

Q: Which of the following inventory cost flow assumptions produces the same ending inventory values…

A: Periodic Inventory System : In periodic inventory system ending balance of inventory will be updated…

Q: Under which method of inventory valuation, the average price used for valuation of goods issued is…

A: Inventory is the material in which the business deal. It is a very important component of company…

Q: Assume that a firm separately determined inventory under FIFO and LIFO and then compared the…

A: FIFO is a method of costing inventory in which the inventory purchased first is out first for…

Q: Explain the inventory cost flow assumption: FIFO, LIFO, weighted average. Provide examples.

A: The company will purchase the inventory, and it will be sold more than its cost to earn revenue for…

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: Scorpion Inc. manufactures mobile carts for the St Lucia National Trust. The information below…

A: Under the weighted-average method of inventory valuation, the equivalent units of production are…

Q: 1. Calculate the value of closing inventory using the Weighted average cost inventory valuation…

A: As per weighted average cost inventory valuation method, cost per unit is calculated by dividing the…

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: carITAT January 1 January 10 January 20 January 25 January 30 Beginning inventory Sales Purchase…

A: Solution: Under Weighted Average periodic inventory method, Computation of ending inventory and cost…

Q: If merchandise inventory is being valued at cost and the purchase price is steadily falling, which…

A: Inventory can be valued using many ways such as : FIFO LIFO Weighted Average Average cost

Q: Which method results in a balance sheet valuation of inventory method farthest away from its…

A: The method that results in a balance sheet valuation of inventory farthest away from its economic…

Q: . Which of the following figures from a firm’s financial statements should be used as itsflow rate…

A: In the above question we have asked about inventory turns which is as below.

Q: Which of the following statements about FIFO is true? Select one: a. All of the statements are…

A: FIFO is the First-in and First-out method of valuation of Inventory. Under this method, it is…

Q: Under which inventory cost flow assumption is the cost of the most recent purchase matched first…

A: &gt;There are various method that can be sued to record the flow of cost to match with the sales…

Q: The cost of goods sold is based on the oldest purchases under which method of calculating inventory…

A: Solution: There are various methods of inventory valuation. These are FIFO, LIFO, Average cost…

Q: Which of the following inventory method measures most closely the current cost of inventory?   a.…

A: The inventory valuation is carried out at the end of the accounting period. The different inventory…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.