1. The specific eight-digit  FASB Codification citation (XXX-XX-XX-X) that describes the meaning of cost as it applies to the initial measurement of inventory. 2. The specific nine-digit FASB Codification citation (XXX-XXX-XX-X) that describes the circumstances when it is appropriate to initially measure agricultural inventory at fair value. 3. The specific eight-digit FASB Codification citation (XXX-XX-XX-X) that describes the major objective of accounting for inventory. 4. The specific eight-digit FASB Codification citation (XXX-XX-XX-X) that describes the abnormal freight charges included in the cost of inventory.

Q: Both IFRS and U.S. GAAP apply the lower of cost or market method for reporting inventory values. If…

A: LCM Method: Termed as Lower of Cost or Market, this method explains that the inventory of a company…

Q: When identical units of an item are purchased at different costs, an inventory cost flow method O a.…

A: Periodic inventory system:A periodic inventory system is a form of inventory valuation where the…

Q: If the net realizable of an entity's inventories is less than its cost, the entry to adjust the…

A: Introduction: Under the lower of cost or net realizable value (LCNRV) method, if net selling price…

Q: eceipts and issues of a raw material for a period were:   Date Details Units Cost per unit…

A: Last in first out (LIFO) involves estimation of cost of goods sold and ending inventory by assuming…

Q: Carrying inventory at a value above its historical cost would most likely be permitted if:A. the…

A: IFRS (International Financial Reporting Standard)allow the inventories of manufacturers and…

Q: provided that the inventory of self-produced goods consists of only one product type, and that it is…

A: Inventories are assets:1) Goods held for sale in the ordinary business course;2) Goods in the…

Q: On the basis of the following data, determine the value of the inventory at the…

A: Inventories are recognized lower of cost or market. This rule is applied to inventory item-wise.…

Q: At the end of a reporting period, a company will value its inventory under one or two methods: The…

A: Inventory:  Inventory is the raw materials or goods that are held by the business for using in…

Q: What is meant by the term gross margin? Describe costing inventory using first-in, first-out.…

A: What is meant by the term gross margin?

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: For valuation of inventory, the lower of cost or market rule may be applied to a. the total…

A: Inventory of the business should be valued by choosing appropriate method. Lower of cost of market…

Q: On the basis of the following data, determine the value of the inventory at the…

A: Note: Under the Lower of cost or Market method, inventory is valued at the lower of the Cost of the…

Q: The following costs are included from the cost of inventories and recognized as expenses in the…

A: Costs of Inventory includes all costs which are incurred for bringing the inventory to the present…

Q: inventory using the lower of cost or net realizable value (LCNRV) rule and the lower of cost or…

A: Requirement: Access the FASB AccountIing Standards CodifIication at the FASB website.

Q: The table below lists financial statement items that may be affected by the use of either the FIFO…

A: Rising costs is the situation when the prices keeps on increasing with time.

Q: Regardless of the inventory costing system used, cost of goods available for sale must be allocated…

A: Cost of good available comprises of beginning inventory and purchases during the period and are…

Q: The most common approach to implementing the lower of cost or market rule for inventory valuation is…

A: Inventory means the stock of goods in which the businessmen deals. Inventory is always valued at…

Q: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when…

A: LIFO Method It is the method used for recording Inventory. Under this method, it is assumed that the…

Q: Required: -a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing…

A: a) Computation Of Cost of goods sold under FIFO, LIFO and weighted average: COGS Units    FIFO…

Q: Sunland Company developed the following information about its inventories in applying the lower of…

A: Note: Under the Lower of cost or Market method, inventory is valued at the lower of the Cost of the…

Q: Why is it important that a manufacturer disclose the cost of each classification of ending inventory…

A: Solution:- answer in the step-2 .

Q: Compute the cost of the ending inventory and the cost of goods sold under FIFÓ, LIFÓ, and…

A:

Q: Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending…

A: Answer FIFO (First in first out) It is the method of recording inventory in which we assume that the…

Q: 8- There are different basis approaches to valuing inventory that are allowed by GAAP, explaining…

A: IAS 2 offers advice for calculating the cost of inventories and recognizing the cost as an…

Q: Required: Compute the cost of the ending inventory and the cost of goods sold under FIFO Method.

A: Given:              Opening Inventory 200 units @ $5              Purchase 300 Units @ $6…

Q: following is accounted for prospectively? Change in reporting entity. Change in…

A: A change in an estimate is accounted for prospectively.

Q: Match each term with the correct description. First-in, first-out (FIFO) method [ Choose ] [Choose…

A: There are various methods to compute the cost of ending inventory as well as the cost of goods sold.…

Q: On the basis of the following data, determine the value of the inventory at the…

A: Item Cost per unit Market value per unit Lower of cost or market value JFW1 $56 $52 $52 SAW9 28…

Q: Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific…

A: Inventory is the accounting of commodities, component components, and raw materials used or sold by…

Q: Which of the following would be relevant in the decision to sell or throw out obsolete inventory?…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of…

A:

Q: Which of the following is a similarity between GAAP and IFRS with respect to accounting for…

A: Inventory valuation: Ending inventory of every company should be valued at the end of each year…

Q: Compute the ending inventory using lower-of-average-cost-or-market. (Round ratios for computational…

A: Solution:- Calculation of the ending inventory using lower-of-average-cost-or-market as follows:-…

Q: When identical units of an item are purchased at different costs a. an inventory cost flow method…

A: The inventory cost flow method states the manner to record the cost of goods sold and cost of ending…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the lower of cost or net…

A:

Q: A method of inventory valuation wherein each particular item in the ending inventory is valued on…

A: Moving average inventory Method: Under this method, inventory is valued based on the average cost of…

Q: According to the GAM for NGAs, this shall be used for large numbers of items of inventory that are…

A: Inventory Management System- Inventory management system could include software system or some kind…

Q: Determine the value of the inventory at the lower of cost or market by applying lower of cost or…

A:

Q: The amount of any inventory writedown of inventory to met realizable value is A. Recognized as…

A: The balance sheet shows the financial position of the company that involves the assets, liabilities,…

Q: The beginning inventory costs and the product costs of the current period are combined to determine…

A: Process costing is used where the product is generated through multiple processes. It is mainly used…

Q: Pharoah Company developed the following information about its inventories in applying the…

A: Net realizable value is the estimated selling price of the product or asset less the cost of…

Q: Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the…

A: LCM or the lower of cost or market method is used to value a company’s inventory. The inventory is…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

A: Lower-of-cost-or-market value:The lower-of-cost-or-market value is a method which requires the…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.