Identifying The Specific Identification Of Tracking And Costing Of Inventory Based On The Movement Of Specific, Identifiable Inventory

There are also various cost assumptions used by businesses, with every entity choosing a respective method in accordance to their inventories, based on the effects they

The process requires Peyton Approved to discover how much inventory is sold and what the cost of goods will result in. The process requires the business to review three forms of merchandise inventory to determine which summary benefits the business’s operational behavior. One will discover when assuming that first inventory purchased by the store is the first to be sold, it is determined that the FIFO method displays the best financial outcome for the business. During the process of updating journal entries, one must enter the information proved appropriately into the T-accounts to add the balance under each record. Once the T-accounts for transactions and adjusted transactions are balanced, the next step is to enter the information provided on the balance sheet. The balance sheet will list Peyton Approved assets, liabilities and stockholders equity after added during the T-account process (Nobles, 2014). Once the balance sheet is completed the income statement, statement of retained earnings, and closing entries can be filled with the information proved. This will give the business a full review from journal entry to closing entries of the business for the six month accounting

inventory using the cost method and did not change the method used during the current

LIFO was the hardest for me to grasp because of the logic and that it could provide a tax break for the company. I had trouble understanding the concept of the LIFO because I kept thinking of the concept backwards. I also had a hard time understanding the tax break because I didn’t understand why it happened. After reading the material again I noticed that where costs of inventory become high over time the LIFO method created a condition in which the less expensive inventory was recorded. This showed that the more expensive items were recently purchased creating a lower profit and a smaller income that could be taxed.

45. (LO1) ATW corporation currently uses the FIFO method of accounting for its inventory for book and tax

e LIFO cost flow method of inventory costing (Martin, J. R.). From Harry Davis’ article, a search for alternatives of the base stock method started, because of the base stock method was no longer apply to the income tax purposes, the acceptance of LIFO by professional groups represents the last part its early development. If the idea of LIFO was not being permitted, there will be a huge loss on the development of the accounting tools. Nobody will know that there is a method of inventory management could help company for the tax purpose. According to Steven Bragg’s article, nowadays, the LIFO method is not applying for IFRS. Although IRS allows the LIFO method, but it must apply for all parts of the financial reports (July, 2017). The Treasury claimed that is hard for them to management and regulate the information if LIFO were applied to a large group of people that using LIFO for the tax purposes. Congress compensated some industries with LIFO, because some of industries was unsuccessful in getting the internal revenue service to recognize of their business practices. The hearings for the 1938 Revenue Act indicate that LIFO was considered appropriate only under the conditions listed

The Company uses the LIFO inventory costing method, and takes advantage of all cash discounts. All units per order cost the same price.

The second types of inventory methods to value its inventory that CVS uses is the most common one used for most business the First-In, First-Out (FIFO). First-In, First-Out (FIFO) is defined as the first inventories bought are the first ones to be sold. CVS only uses FIFO for Some Retail Pharmacy and Rest of Business (Front store). CVS utilizes this method because; the fresher products have to be out the door first. Also, FIFO is an easier method than Weighted Average Cost. And most importantly it may over inflate cost because the last products bought and out the door first are usually the most expensive products.

The Last in first out (LIFO) liquidation Inventory valuation method was changed as Inventory level in1984, 1983 and 1984 was decreased by Harnischfeger. By adopting this process, inventory that was purchased at lower cost in previous years was sold at higher prices.

point of sale system. The POS system is a perpetual inventory counting method that electronically records items immediately upon their point of sale (Stevenson, 2015, pg. 552). In other words, as a cashier scans a customer 's groceries, each scanned item is automatically recorded in the system and deducted from the store’s inventory. Implementing a point of sale would benefit a business’s inventory management function in several ways. First, the POS system will provide managers with a continuous flow of updated information (Stevenson, 2015, pg. 552). As a result, the information will provide more accuracy when used for sales forecasts and analysis, which substantially affect inventory decisions. Continuously, this inventory system would also allow greater flexibility in the sense that it can be wirelessly linked to the main company’s inventory system, creating a network of the company’s inventory systems. The POS system is capable of tracking many operations at once and can be modified according to management’s needs (MacCarthy, n.d.). This flexibility would undoubtedly benefit a large company like Wegman’s with many store locations. Lastly, the system is able to help businesses maintain a high level of customer service. Because the system gives customers a receipt with the price and quantity of each item purchased, the customer is able to see exactly what he or she purchased. This practice

2) The system keeps track of removals from inventory on a continuous basis, so the system can provide information on the current level of inventory for each item

To account for inventory, the company uses, first in first out policy. Property plant and equipment are recorded at cost less the accumulated depreciation amount. Depreciation is charged on straight line method

The data can easily loss because they only use a logbook to record their inventory data. With the system, it will help more on the security of the data. Inventory loss hard to detect because admin need to review one by one page in the logbook, but with the system developed, it may help the admin to detect the inventory in and out from the

Assuming Top That uses the first-in, first-out (FIFO) method to account for inventories, the assignment of costs to units completed and transferred to the Sewing Department during February is