4. The purchase of inventory items on account using the perpetual inventory method a. Has no effect on the current ratio but decreases working capital. b. Has no effect on working capital but decreases the current ratio. c. Decreases working capital and the current ratio. d. Has no effect on working capital nor the current ratio. 5. The cost of inventories shall be measured using a. Either FIFO, average method or LIFO b. Average method c. Either FIFO or average method d. FIFO

Q: 1. Cost of goods sold + ending inventory equals?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: 1. On which of the following instances is cost estimation not permitted? A. Estimating the cost of…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: When there are no inventory at the beginning or at the end of the period, the total purchases will…

A: The total purchase amount is the price agreed upon by the buyer and seller for an item, including…

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

A: Item A cost=Quantity×Cost per unit=186×$6=$1,116

Q: 8. How do you calculate cost of goods sold on an income statement? A. ČOGS+ Beginning Inventory+…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1.  The lower-of-cost-or-market method can be applied to each item of inventory. each major class…

A: In case of multiple questions, we are allowed to solve only the first question. In case if you want…

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: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: 5. If a unit of inventory has declined in value below original cost, but the market value exceeds…

A: The procedure of determining the actual value of inventories at the end of the year is known as…

Q: 4. What are the important factors in using a perpetual inventory system

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Which of the following statements regarding the cost of transportation-in for the purchase of…

A: Cost of goods sold = Beginning inventory + Purchase of merchandise  + Transportation in - Ending…

Q: Jamison Corporation’s inventory cost in its balance sheet is lower using the first-in, first-out…

A: Option b. down is the answer.

Q: Total goods available for sale is equal to  a. the sum of ending inventory and net purchases. b.…

A: Beginning inventory + Net purchases = Cost of goods sold + Ending inventory Total cost of goods…

Q: Choose the statement which is correct. Assume that inventory prices are rising. Select one: a. The…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: 1. Determine the costs that should be assligned to the ending Inventory and to goods sold under the…

A: FIFO Perpetual:                     Purchase Cost of goods sold Balance   Date Quantity Rate…

Q: 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimated…

A: Given: Merchandise inventory = $ 5,200 Inventory on June 30, 2018 = $ 4,900 Amount of Sold…

Q: Which of the following statements is correct regarding the direct method of accounting for any write…

A: Direct Write Down Method: When a firm uses the direct write-off technique, a credit will be recorded…

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: Which of the following is not a characteristic of a perpetual inventory system? O Cost of goods sold…

A: Here in this question we are required to answer which of the characteristics is not of perpetual…

Q: Compute for the cost of ending inventory and cost of goods sold using: a. FIFO - periodic b.…

A: The following computations are done for Extreme Company.

Q: T, F. Under the GAAP rule, inventories can be reported at above cost in the balance sheet. T, F. If…

A: Under GAAP rules , inventory is valued at cost or net realizable value which ever is lower due to…

Q: Assuming that the perpetual inventory method is used and costs are computed at the time of each…

A: A perpetual inventory system is a method of inventory management that records real-time transactions…

Q: 2. What accounting term is used for the cost of goods unsold at the end of the accounting period? A.…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: The following information is taken from a company's records. Cost Market value per Unit per Unit…

A: Under the lower of cost & market value method, the per-unit value that is lesser between cost…

Q: If purchases were recorded correctly but ending physical inventory is understated, which one of the…

A: Working capital, conjointly referred to as web assets (NWC), is that the distinction between a…

Q: P6-28A Accounting for inventory using the perpetual inventory system- For all problems, assume the…

A: Inventory valuation is a process in accounting that businesses use to determine the value of unsold…

Q: 8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

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 gross profit method and retail inventory method C Are both estimates of ending inventory and…

A: In company, there is a requirement of valuation of the inventory to find out the cost of the goods…

Q: Suppose Ajax Corporation overstates its ending inventory amount. What effect will this have on the…

A: Given information is: Ajax Corporation overstates its ending inventory amount.

Q: 4. Using the FIFO method, the most recent purchases of inventory are assumed to be contained: a. on…

A: Under FIFO method, units purchased earlier are assumed to be sold first and the ending inventory…

Q: Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Assuming a current ratio of 1.00 and an acid-test ratio of 0.75, how will the purchase of inventory…

A: Current ratio = Current Assets / Current Liabiliites Acid Test Ratio = Liquid Assets / Current…

Q: What are the effects (UNDERSTATED, OVERSTATED, NO EFFECT AT ALL) of these inventory errors on (a)…

A: Inventory refers to the stock that the company held for resale purposes or the goods that are not…

Q: Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of…

A: The Various methods used to valuate inventory are (1) Last In, First Out (LIFO) (2) First In, First…

Q: Explain briefly the application of the LCM rule to ending inventory. Describe its effect on the…

A:

Q: (2). For valuation of inventory, the lower of cost or market rule may be applied to (a). the total…

A: Inventory is the amount or value of all goods that the business owns. It includes all raw materials,…

Q: In Perpetual inventory system the loss of goods is included in a. Sales b. Closing stock c.…

A: The perpetual inventory system is a type of inventory valuation in which the inventory sold and…

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 following information is taken from a company's records. Cost Market value per Unit per Unit…

A: As per IAS 2 inventory is to be measured at cost or Net realizable value whichever is lower. Here…

Q: Selling expenses are shown in which of the following statement? a. Cost of Goods Sold b. Profit and…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: 8. The lower of cost or market rule for inventory valuation can be used in conjunction with the…

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

Q: If ending inventory in Period 1 is​ overstated, gross profit in Period 2​ is

A: The correct answer is Understated.