Explain the application of the cost principle to an item in the ending inventory.

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Answer 1

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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subject-general accounting

ayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000. The unadjusted balances of selected accounts at December 31, 2023 are as follows: Accounts receivable $ 300,000 Allowance for doubtful accounts (debit) 10,000 Sales revenue (including 80 percent in sales on account) 800,000 Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts. Required: 1. Prepare the journal entries to record all the transactions during 2022 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)…

Answer 2

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 3

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 4

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 5

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

Answer 6

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

Answer 7

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Answer 8

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.