__ cost of inventory is incurred due to non availability of material a. Stock-out cost b. Ordering cost c. Holding cost d. Setup cost
Q: When net realizable value is lower than cost, and the loss method applying the…
A: As per Accounting Standards on Inventory valuation, each item of inventory is calculated at cost or…
Q: Inventory costing method that treats all mfg cost, direct and indirect, FC or VC, as inventoriable…
A: The treatment relating to direct and indirect costs varies for different costing methods.
Q: Finished goods inventory shows the cost of completed goods available for sale to customers. O True…
A: Finished goods inventory are the part of the cost of goods available for sale and it is added back…
Q: Which of the following is not an inventory method/cost flow assumption? O a. First-in, first-out O…
A: 5 methods for inventory cost are below: The retail inventory method. The specific identification…
Q: Lower of cost and net realizable value a. results in the lowest valuation if applied to the total…
A: It is preferable to value the inventory at lower of cost or net realizable value (LCNRV) in…
Q: "Market" is defined in the "Lower-of-cost-or-market" rule required to account for FIFO inventory as:…
A: Inventory- Inventory refers to the items which business kept on hand in order to make the money, it…
Q: Which of the following is not permitted as a cost of inventory?
A: Which of the following is not permitted as a cost of inventory? Answer - b) Storage costs
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: Gross profit , Ending inventory , Cost of goods sold under Lifo.
A: Formula: Gross profit = Sales - cost of goods sold.
Q: Which of the following statements about merchandisingactivities is true? (More than one answer may…
A: Merchandising activities means activities of purchase and sale of goods that are ready for sale.…
Q: 3. Inventory management requires the firm to balance the quantity of inventory on hand for…
A: EOQ provides an order quantity where holding costs and ordering costs are minimized.
Q: Which income statement account(s) would be affected by a policy choice at the same time as the…
A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…
Q: FAST PLZ - Which of the following element of cost is important in calculating the cost of closing…
A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…
Q: The cost of purchase of inventory does not include: A. Freight handling and other cost directly…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: Explain the lower of cost and net realizable value approach to valuing inventory.
A: Merchnadise Inventory: It refers to the current assets that a company expects to sell during the…
Q: 1. Inventory should be stated at (a) Lower of cost and fair value. (b) Lower of cost and net…
A: Inventory means the stock of goods in which the businessmen deals. Inventory is to be valued as per…
Q: Which of the following is not considered in determining FIFO unit cost? A. Equivalent unit of…
A: Equivalent unit of production in ending inventory is relevant to calculate EUP. Equivalent unit of…
Q: The primary purpose for using an inventory cost flowassumption is to:a. Parallel the physical flow…
A: Inventory cost flow assumptions: These are the assumptions including FIFO, LIFO, and weighted…
Q: I need number 3. Determine the cost assigned to ending inventory and to cost of goods sold using…
A: In this Numerical has Covered the Concept Inventory Valuation Through FIFO method. 1.FIFO:- As The…
Q: Which of the following is the same as 'net realisable value' of inventory? a. proceeds of sale…
A: The question is multiple choice question Required Choose the Correct Option.
Q: 2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b.…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which of the following is not a common cost flow assumption used in costing inventory? O First-in,…
A: Companies assign costs to products through inventory costing, often known as inventory cost…
Q: Which of the following should not be taken into account when determining the cost of inventory? A.…
A: As per IAS 2, Inventory Cost of Inventory consists of 1. Purchase cost 2.conversion cost 3.other…
Q: In the immediate write-off approach, under-applied overhead is regarded as: a. an increase in…
A: Underapplied overhead occurs when a company's overhead expenses surpass what it budgets for in order…
Q: Applying Lower of Cost or Market value (LCM) to following items to determine fare inventory value.…
A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…
Q: trail balance not include O revenue. cost of goods sold. O Ending inventory. O fright-in account.
A: Trail balance consists of general ledger balances.Summation of all debits should equal to summation…
Q: I need number 2. Determine the costs assigned to ending inventory and to cost of goods sold using…
A: Step 1 Inventory management system is the process of managing the flow of inventory
Q: View Policies Current Attempt in Progress Which costing method cannot be used to determine the cost…
A: As per accounting standard, cost of inventory should be calculated as lower of cost or net…
Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…
A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…
Q: a.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO.
A: Solution :
Q: Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c.…
A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: What are some inventory ordering costs? As defined here, are thesecosts fixed or variable?
A: Inventory ordering cost can be define as the cost that is incurred by the firm during order…
Q: inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True F
A: Solution: False. The statement that Ending inventory is added to Total Goods Available for Sale when…
Q: Match the term on the left to the appropriate description on the right. v Cost of goods available…
A: Cost of goods available for sale is used for calculating cost of goods sold, COGS=COGAS-Ending…
Q: The journal entry to record a write-down of inventory from cost to its lower market value includes…
A: Inventory is very important current asset for the business. As per accounting standards, inventory…
Q: Cost of goods available for sale consist of two elements: beginning inventory and ending inventory…
A: Introduction: Beginning inventory: Inventory value at the beginning of the accounting period called…
Q: Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2.…
A: Particulars Cost Retail Beginning inventory 650,000 1,200,000 Add: Net Purchases (Purchase -…
Q: the economic order quantity model the return on capital that is forgotten when it is invested in…
A: In EOQ model that is economic order quantity we consider the lot for which there will be overall…
Q: What is the purpose of the lower of cost or net realizable value rule?
A: lower of cost or net realizable value rule(LCNRV method):Inventory should be valued at the lower of…
Q: beginning finished goods inventory plus cost of goods manufactured equals cost of goods sold true…
A: COGS represents the cost of the products that are sold by the entity.
Q: Calculate the value of ding system. Ending inventory Cost of goods sold $ $
A: FIFO It is the method where we assume that the goods which were purchased earlier will be sold…
Step by step
Solved in 2 steps
- When inventory items are highly specialized, the best inventory costing method is ________. A. specific identification B. first-in, first-out C. last-in, first-out D. weighted averageWhich inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c. LIFO. d. Average cost.When valuing inventories at the lower of cost or net realisable value, which one of the following conventions is being applied? O A. Consistency OB. Prudence C. Materiality O D. Accruals C...
- In the economic order quantity model the return on capital that is forgotten when it is invested in inventory is a/an a. Carrying costs b. Exclusion in the EOQ computation c. Irrelevant cost d. Order cost1. Which one of the following types of costs is most likely to be included in determining the cost of inventory?a. Freight-inb. Interest cost for amounts borrowed to finance the purchase of inventoryc. Freight-outd. Marketing cost 2. Which of the following equation is correct and used in costing?a. Beginning Inventory + Purchases + Ending Inventory = Cost of Goods Soldb. Cost of Goods Sold - Ending Inventory - Purchases = Beginning Inventoryc. Cost of Goods Sold + Ending Inventory - Beginning Inventory = Purchasesd. Beginning Inventory + Cost of Goods Sold - Purchases = Ending InventoryCompute the ending inventory cost using : a. Moving Average Method b. FIFO Method c. LIFO Method
- Required: Compute the inventory cost using a. Moving average method b. FIFO method"Market" is defined in the "Lower-of-cost-or-market" rule required to account for FIFO inventory as: FIFO cost O net realizable value. O replacement cost. Obook valueWhen inventory items are highly specialized, the best inventory costing method is ________.A. specific identificationB. first-in, first-outC. last-in, first-outD. weighted average
- What are some inventory ordering costs? As defined here, are thesecosts fixed or variable?Which inventory costing method is almost always done on a perpetual basis?A. specific identificationB. first-in, first-outC. last-in, first-outD. weighted averageDistinguish between product costs and period costs asthey relate to inventory.