If a business has large differences in the value of the inventory it has on hand...

If a business has large differences in the value of the inventory it has on hand during the year, the cost of its insurance requires the ________ form of insurance policy.

Select one: a. Reporting b. Variation c. Inventory cycle d. Double reduction

Expert Solution

Answer : Option -a

The value reporting form is an insurance report used to provide the information necessary for a variable coverage amounts needed by a business which holds irregular inventories throughout the year.

It reports the value of the stock to the insurance provider

The insurer will adjust the amount of coverage to reflect the value of the current inventory

jeff jeffy answered 2 years ago

Sunland Company has old inventory on hand that cost $30750. Its scrap value is $41000. The...

Sunland Company has old inventory on hand that cost $30750. Its scrap value is $41000. The inventory could be sold for $102500 if manufactured further at an additional cost of $30750. What should Sunland do? A.Sell the inventory for $41000 scrap value B.Dispose of the inventory to avoid any further decline in value C.Hold the inventory at its $30750cost D. Manufacture further and sell it for $102500

Part 1 On January 1, 2021, ABC Inc. started business with inventory on hand of $34,000....

Part 1 On January 1, 2021, ABC Inc. started business with inventory on hand of $34,000. The company reported purchases for the year of $136,000 and sales of $306,000. The value of inventory on hand on December 31, 2021 was $45,000 at end of year prices. The price index for 2020 was 106. What should abc Inc. report as COGS for 2021 if they use Dollar Value LIFO as their inventory method? Part 2 ABC Co. uses the conventional approach...

Explain "Days of Inventory on Hand" and discuss the implications if the "Days of inventory on...

Explain "Days of Inventory on Hand" and discuss the implications if the "Days of inventory on hand" show an increase annually (NO PLAGIARISM- 1 to 2 paragraphs answer) Days of Inventory on Hand 54.95 53.72 55.29 60.48 63.48 59.03 63.50 67.61 66.28 64.67 66.90

Valuation of Inventory The inventory on hand at the end of 2016 for Reddall Company is...

Valuation of Inventory The inventory on hand at the end of 2016 for Reddall Company is valued at a cost of $94,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $200. 2. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $200. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges...

Question 3 Consider each of the following independent situations: A. Inventory on hand at year-end has...

Question 3 Consider each of the following independent situations: A. Inventory on hand at year-end has been valued at cost in the financial report of your client. However, net realisable value is 10% below cost according to the audit findings. The difference is a material amount. B. In the previous financial year your client purchased property and entered into a contract to develop a shopping complex and then sell the developed real estate to an unrelated third party for a...

The inventory on hand at the end of 2016 for Reddall Company is valued at a...

The inventory on hand at the end of 2016 for Reddall Company is valued at a cost of $94,000. The following items were not included in this inventory: Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $200. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $300. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are...

The following pertain to the cost of H’s only inventory item: Inventory on hand, January 1 &

The following pertain to the cost of H’s only inventory item: Inventory on hand, January 1 295 units @ $50 per unit Purchases, January 12 590 units @ $88 per unit Purchases, January 20 450 units @ $91 per unit Purchases, January 31 300 units @ $93 per unit 1,635 Sales, January 5 75 units @ $200 per unit Sales, January 15 350 units @ $200 per unit Sales, January 22 550 units @ $200 per unit Sales, January 30 140 units @ $200 per unit 1,115 (1,115 x...

Fiedler Corporation uses Lower of Cost or Market to value inventory. An item in inventory has...

Fiedler Corporation uses Lower of Cost or Market to value inventory. An item in inventory has the following information. How much will this item be valued at on the books for reporting purposes? Sales Price 1,200 Net Realizable Value 1,150 Normal Profit 80 Replacement Cost 1,050 Original Cost 1,100

LCNRV and LCM a. As of 12-31-18, Zena Company has four different inventory items on hand....

LCNRV and LCM a. As of 12-31-18, Zena Company has four different inventory items on hand. Data on the four items follows: Item Quantity on hand Unit cost Expected selling price Estimated disposal costs C3Z22P3 400 $30 $80 $7 PQ27845 100 $52 $55 $5 ZT15577 250 $27 $40 $0 SF98888 300 $13 $30 $9 Using the lower-of-cost-or-net realizable value approach applied on an individual-item basis, determine if Zena needs to make an entry to write her inventory down. If so,...

Risk and planning go hand and hand. If your business activities are likely to pose risks,...

Risk and planning go hand and hand. If your business activities are likely to pose risks, who (as a guide) will help you best manage those risks? What are your options? Which option makes the most senses?

Question