Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits. To determine the proper accounting treatment of inventory.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The Hidalgo Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 18,500 units. The ending work in process inventory is 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the costs per equivalent unit for the period are $3.75 for materials and $5.20 for labor and overhead, what would be the balance of the ending work in process inventory account? (Do not round cost per equivalent unit).

Please provide the answer to this general accounting question with proper steps.

Please provide the correct solution to this financial accounting question using valid principles.

Answer 2

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Answer 6

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Answer 7

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Answer 8

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.