Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost?

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

A:

Q: The three most common inventory cost flow methods are a.FIFO, LIFO, and weighted average cost.…

A: The inventory valuation method is used by the management to evaluate the closing inventory and cost…

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: 7. If there is an association between an INVENTORY class and a SUPPLIERS class, which of the…

A: Inventory: Stocks of raw materials, work-in-progress (WIP), finished goods, and spare parts and…

Q: Calculate ending inventory under FIFO and LIFO both with workings

A: Formula: Ending inventory = Beginning inventory + Purchases - sales units

Q: Which inventory method is least likely to be used under IFRS? C . Weighted average.

A: Introduction: Inventory: Inventory refers to the goods which are held by the business organization…

Q: Which of the following is not an inventory method/cost flow assumption? O a. First-in, first-out O…

A: 5 methods for inventory cost are below: The retail inventory method. The specific identification…

Q: 2 Calculate ending inventory using the lower of cost and net realizable value.

A: The Inventory is  recorded at cost or NRV in the financial position so that inventory is valued…

Q: Which of the following statement about the inventory write-down is not correct? * If the cost is…

A: As per International Accounting Standards IAS 2- “ Inventory includes assets that are held for the…

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

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

Q: Which of the following statements regarding the lower of cost and net realizable value (LCNRV) rule…

A: The rule of valuing the inventory at cost or net realizable value is also called as Prudence concept…

Q: O and LIFO inventory management?

A: The method an organization uses to assess their inventory prices can have an effect on their…

Q: Which inventory method is least likely to be used under IFRS? B . Last in, fi rst out (LIFO).

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Vhat is the correct amount of inventory?

A: amount of inventory = FG + cost + goods in process +material + factory supplies

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: Describe the differences between an inventory system that uses a set quantity (Q)  and one that uses…

A: In a set quantity inventory system the lot size and the order quantity is fixed, while in a fixed…

Q: Explain the (a) lower of cost or net realizable value (LCNRV) approach and the (b) lower of cost or…

A: LCNRV (Lower of Cost or Net Realizable Value) approach:   It is an approach that compares the cost…

Q: 1. Inventory should be stated at (a) Lower of cost and fair value. (b) Lower of cost and net…

A: Inventory means the stock of goods in which the businessmen deals. Inventory is to be valued as per…

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: Which of the following would cause periodic ending inventory to be overstated?

A: Note - the answer has been provided on the basis of information available in question. If any…

Q: Explain in detail the factors suggesting preptual and periodic inventory system

A: PERPECTUAL INVENTORY SYSTEM  In this system, the inventory is recorded on a regular basis. The…

Q: (b) Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending…

A: Ending inventory is 100 units at the end of June. So the cost of ending inventory as per following…

Q: 2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b.…

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

Q: Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

A: FIFO: Under this method, ending inventory is valued at the latest price and Merchandise sold are…

Q: View Policies Current Attempt in Progress Which costing method cannot be used to determine the cost…

A: As per accounting standard, cost of inventory should be calculated as lower of cost or net…

Q: Based on the following data, make a comparison between the use of the flow of inventory costs…

A: Given, sales = $200000 Selling per unit = $5 per unit Total number of units sold = Sales / selling…

Q: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: Which of the following statements related to the application of the lower of cost and net realizable…

A: Option B is correct

Q: The following information for Tuell Company is available:                              1. Assume…

A: Inventory refers to all of the items, goods, commerce, and materials held by a company for the…

Q: What is the purpose of disclosing the difference between the reported LIFO inventory amounts and…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

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 three methods of inventory costing— FIFO, LIFO, or weighted average cost—will in…

A: First-In-First-out (FIFO): FIFO is a method used for recording inventory sold. In this method the…

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: Which inventory method is least likely to be used under IFRS? A . First in, fi rst out (FIFO).

A: Inventory is an important current asset for an organisation’s accounting, thus it is essential that…

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

A:

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: Which of the following is NOT an inventory management technique?

A: Every business unit follows an inventory management process to manage its stock of goods efficiently…

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 Accounting

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