Applying Lower of Cost or Market value (LCM) to following items to determine fare inventory value. Make necessary Journal entry in case there is difference in inventory value compare to its original cost.

Q: Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming…

A: LIFO is last in first out method in which inventories which are purchased in last will be sold out…

Q: complete the following table which compares the effects of LIFO,  FIFO and weighted-average…

A: Inventory valuation in costing is done using mainly three methods namely FIFO, LIFO and weighted…

Q: Estimate ending inventory and cost of goods sold using the gross profit method.

A: Under gross profit method, calculation of cost of goods sold: Cost of goods sold = Sales* ( 1 -…

Q: Estimate ending inventory and cost of goods sold using the retail inventory method, applying the…

A: The retail inventory method is an accounting method used to estimate the value of a store's…

Q: When using the periodic FIFO inventory cost method, which of the following statements is true? a.The…

A: Under FIFO method the oldest products in stock is used to assess the cost of products sold. To put…

Q: Which of the following statements is correct? Group of answer choices A)The choice of an inventory…

A: SOLUTION AVERAGE COST METHOD IS USED TO CALCULATE THE COST OF INVENTORY AT THE END AND ALSO THE COST…

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: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: Prepare a memorandum containing responses to the following items. a.    Describe the cost flow…

A: a.

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Which inventory method provides a better matching ofcurrent costs with sales revenue on the income…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: In a cost-divided income statement, changes in purchased goods (merchandise) must be reported under…

A: Following is the answer to the given question

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: The cost method that will yield an ending inventory value that is somewhere between possible high…

A: Inventory valuation has 4 Methods - 1. FIFO 2. LIFO 3. Weighted Average 4. Specific Identification…

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: Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.

A: Lets start with basic understanding. There are two system for inventory valuation which are, (1)…

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: Required: Compute the ending inventory cost using   a. Moving average method   b. FIFO method

A: The inventory can be valued using various method as LIFO, FIFO and average method.

Q: n perpetual method, _______________ will be credited if an item bought will be returned.    Cost of…

A: In perpetual method, Merchandise Inventory will be credited if an item bought will be returned. Cost…

Q: Required Determine the amount of product costs that would be allocated to cost of goods sold and…

A: 1. FIFO method: This method assumes that the items purchased first are sold first. 2. LIFO method:…

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: Use the information in the account records on the Inventory tab to calculate the total cost of…

A: FIFO means First In, First Out. That means the cost of ending inventory comprises of cost of…

Q: a.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO.

A: Solution :

Q: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

A: Cost of goods sold are the cost of the inventory which has been sold by the company during the year…

Q: Required: Hemming uses a periodic inventory system.    (a) Determine the costs assigned to ending…

A: FIFO is first in first out inventory valuation method in which inventories which are purchased first…

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: 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: 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: nding Inventory and Cost of goods sold using LIFO?

A:

Q: When using the periodic LIFO inventory cost method, which of the following statements is true? a.The…

A: As per the LIFO method, goods purchased last or most recent purchases would be sold first.   Which…

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: Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO. FIFO LIFO…

A: The cost of goods sold and ending inventory under periodic inventory system computed at the period…

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

A:

Q: The costs of ending inventory is similar under both periodic and perpetual inventory system if…

A: The given question is related to inventory valuation. The first method of inventory valuation is the…

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: nventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The…

A: First in First out Method This is one of the popular method of inventory valuation.  While using…

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: answer the following regarding inventories.   The inventory costing method which in a period of…

A: The correct Answer is Last-in, First-out (LIFO) Method

Q: In a period of falling prices, the use of which inventory cost flow method would typically result in…

A: The inventory valuation is done at the end of the accounting period. Different techniques are…

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…

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.