(2). For valuation of inventory, the lower of cost or market rule may be applied to (a). the total inventory (b). each item or the total of inventory (c). each item, the total of inventory, or major categories of inventory (d). each item

Q: Do you apply the LCNRV method to each individual item, to a category, or to the total of the…

A:

Q: Assuming no beginning inventory, what is the trend of inventory prices if cost of goods sold…

A: Definition:   First-in-First-Out (FIFO): In this method, items purchased initially are sold first.…

Q: Using the lower of cost or market, what should the total inventory value be for the following items:…

A:

Q: Under which inventory cost flow assumption is the oldest cost of inventory items likely to remain on…

A: Correct option is LIFO

Q: The inventory valuation method that has the advantages of assigning an amount to inventory on the…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

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

A: Commodity Cost per unit Market Value per unit Lower of Cost or Market  JFW1 $37  $39  $37   Saw9…

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: Inventory on the Balance Sheet On the basis of the following data, determine the value of the…

A:

Q: is a measure of inventory profitability that relates a gross margin to the cost of the inventory.

A: Inventory profitability means profits related to inventory cost which are calculated using these two…

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: Discuss and explain the major uses of the gross profit method of inventory estimation.

A: Generally  we get gross profit  after trading a/c prepared it means after net sales  minus net…

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: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.…

A: Under the FIFO and LIFO, the obtained cost of goods sold can be higher or lower than the actual…

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: On the basis of the data shown below: Item Inventory Quantity Cost per Unit Market Value per Unit…

A: As per  lower of cost or market method, we need to consider inventory value at lower of market value…

Q: When inventory is held on consignment it should be?   Derecognized Reported as cost of goods sold…

A: Solution: When inventory is held on consignment it should be "Derecognized" as inventory is not…

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: Consider each of the following independent situations. Should a company report the goods in its…

A: If the seller expects a sales return, then it should debit sales return and credit refund liability…

Q: Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and…

A: The cost of products available for sale is the cost of raw materials and labor used to make goods…

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: Which of the following is equal to the cost of goods sold? a. net purchases plus the excess of…

A: The question is related to cost of goods sold. The cost of goods sold is calculated with the help of…

Q: Explain the lower of cost or market rule for inventory valuation and explain why it is GAAP.

A: Lower of cost or market value for inventory valuation is just a mixture of many accounting…

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?…

A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross…

Q: PAS 2 provides clearcut principles concerning measurement of inventory: Paragraph 9 provides that…

A: Inventory Measurement refers to the process of assigning fair value to the inventory held by an…

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: Which one the following types of cost is most likely to be included in determining the cost of…

A: Freight in cost is concerned with the inventory value and should be included in determining the cost…

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

A: The inventory needs to e valued at lower of cost or market value which is lower.

Q: Which of the following statements about the valuation of the inventory is correct, according to PAS…

A: Philippine Accounting Standards (PAS) 2 Inventories guides how to record or value inventories in the…

Q: Which of the following statements about FIFO is true? Select one: a. All of the statements are…

A: FIFO is the First-in and First-out method of valuation of Inventory. Under this method, it is…

Q: Complete the table below for the transactions provided using the following methods of inventory…

A: Working (FIFO)   Computation

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

A: calculation of value of inventory at lower of cost or market  method

Q: When determining gross profit, only the following items must be taken into consideration:    A.…

A: Gross Profit is the revenue earned by the company after subtracting the cost associated with earning…

Q: (A) Using the FIFO assumption, calculate the amount charged to cost of goods sold, the value of the…

A:

Q: Under which inventory cost flow assumption is the cost of the most recent purchase matched first…

A: >There are various method that can be sued to record the flow of cost to match with the sales…

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: 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: he amount of any write down of inventory to net realizable value and all losses of inventory shall…

A: The international accounting standard 2 (IAS 2) contains the rules related to inventories.

Q: Which of the following statements are true regarding Costof Goods Sold?(i) Cost of Goods Sold…

A: The cost of goods sold is deducted from the sales revenue to calculate the amount of gross profits.

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

A: Total cost :- JFW1 = 58 x $29 = $1,682 SAW9 = 119 x $15 = $1,785   Total market value :- JFW1 =…

Q: The inventory valuation method which assumes that the items purchased first are the first items to…

A: Valuation of an inventory depends upon which items are sold first in the inventory cycle. This gives…

Q: how do I find the amount of inventory under the dollar value using the LIFO method?

A: Dollar value LIFO Method: Dollar value LIFO is a method which is basically used for inventory that…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.