Cost for inventory purposes should be determined by the
inventory cost flow method most clearly reflecting periodic income.
Students should respond to the three questions presented
below:
1. Describe the fundamental cost flow assumptions for the
average cost, FIFO and LIFO inventory cost flow methods.
2. Discuss the reasons for using LIFO in an inflationary
economy.
3. Where there is evidence that the utility of inventory will
be less than cost, what is the proper accounting treatment, and
under what...
If merchandise inventory is being valued at cost and the price
level is decreasing, which of the three methods of costing - FIFO,
LIFO, or Weighted Average cost - will yield
a. the highest inventory cost
b. the lowest inventory cost
c. the highest gross profit
d. the lowest gross profit
please explain the answer thoroughly.
If merchandise inventory is being valued at cost and the price
level is decreasing, which of the three methods of costing--LIFO,
FIFO, or weighted average will yield
a. the highest inventory cost
b. the lowest inventory cost
c. the highest gross profit
d. the lowest gross profit
2. A manufacturer shipped merchandise to a retailer on a
consignment basis. If the merchandise is unsold at the end of the
period, in whose inventory should the merchandise be included?
Based on the following data , estimate the cost of the ending merchandise inventoryParticularsAmount$Sales92,50,000Estimated Gross profit rate 36%Beginning merchandise inventory1,80,000Purchase (net)59,45,000Merchandise available for sale61,25,000
2. "The selection of an inventory cost flow method is a decision
made by accountants." Do you agree? Explain. Once a method has been
selected, what accounting requirement applies?
The selection of an inventory cost flow method is a decision
made by accountants.” Do you agree? Explain. Once a method has been
selected, what accounting requirement applies?
"Inventory Cost Flow Assumptions"
Compare and contrast the different inventory cost flow
assumptions. Explain the consequences that result from the use of
alternative inventory cost flow assumptions.
In a process cost flow, which of the manufacturing cost accounts
(Raw Materials Inventory, Manufacturing Overhead, and Factory
Labor) is debited at the time the costs are incurred and credited
at the time the costs are assigned to Work in Process accounts?
The flow of water through soil depends on the porosity of the
soli which is assumed to be normally distributed. To compare two
types of sandy soil n1=16 measurements are to be taken on the
porosity of soil A and n2=21 measurements are to be taken on soil B
Assume that the two sample variances S12= 0.01, S22= 0.02.
(a) construct a 95% confidence interval for ratio of variances
(variance2/variance1). Is there any evidence that
two population variances are qual....