In a period of rising prices, the inventory method which tends to give the highest reported inventory is A) FIFO B) Moving Average  C) LIFO  D) Weighted-average

Q: If prices of inventory are unchanged throughout the year, LIFO and FIFO inventory valuation methods…

A: The ending inventory under LIFO method is calculated by assuming that the inventory purchased last…

Q: Which inventory valuation method would yield the lowest cost of goods sold in periods of rising…

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

Q: 7 During a period of steadily rising prices, which one of the following inventory valuation methods…

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

Q: Explain the calculation procedures for and significance of each of the following:  a. Return on…

A: a. Return on sales: It is a financial ratio that state how efficiently an organization is earning…

Q: When would using the FIFO inventory costing method produce higher inventory account balancesthan the…

A: Inventory is one of the important asset for the business. Valuation and management of inventory is…

Q: When assessing inventory management policies, is the current ratio or acid-test ratio more…

A: Current Ratio = Current Ratio is Calculated by dividing the current Assets with current liabilties.…

Q: Compared to using the FIFO method to account for inventory, during periods of risingprices, a…

A: USING OF LIFO METHOD

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: If the inventory is valued at cost and the price level is steadily increasing, which type of…

A: Under FIFO, goods that are purchased initially are sold first, however, under LIFO it is assumed…

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: Which of the following inventory cost flow assumptions produces the same ending inventory values…

A: Periodic inventory system is a system where inventory records are updated on a periodic basis but in…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: Zimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared tothe cost of replacing…

A: If a company follows FIFO method, then the inventory will go based on first in first out. If a…

Q: Which of the following inventory cost flow assumptions produces the same ending inventory values…

A: Periodic Inventory System : In periodic inventory system ending balance of inventory will be updated…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: The question is based on the concept of Cost Accounting.

Q: The inventory evaluation method which does not represent the actual ending inventory value is?…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: hen purchase costs regularly rise, the inventory costing method that yields the highest reported net…

A: The inventory can be valued using various methods as LIFO, FIFO, average and specific identification…

Q: Which inventory costing method results in the lowest net income during a period of rising inventory…

A: Answer:LIFO is the correct option

Q: If ABC uses the average retail method, how much would the estimated ending inventory be?

A: Retail Inventory method is used to verify the Ending Inventory Value. There are 2 methods: Average…

Q: During times of deflation , LIFO will provide the highest closing inventory figure and the highest…

A: A drop in the overall price level of products and services is referred to as deflation. When the…

Q: During times of inflation why does the value of inventory change between FIFO and LIFOevaluations?

A: A company uses various methods for valuing the ending inventory. The different methods can be…

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

A:

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: Indicate by a (1), (2), or (0) whether each of the following events wouldprobably cause average…

A: Average annual inventory holding is a relationship between average inventory and cost of goods sold…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Average inventory = (beginning inventory+ending inventory)/2 Inventory turnover = net sales/Average…

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

A: Determine the value of inventory based on lower of cost or market price.

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: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…

Q: calculate the average inventory (in $) and inventory turnover for the following. If the actual…

A: Cost of Goods Sold: It is the cost of producing the goods which are sold by the business.  Average…

Q: If the book inventory is larger than the physical inventory, the difference is known as Reduction…

A: A reduction occurs when a thing is made smaller or less in size or amount. An overage occurs when…

Q: Basic inventory data for April 30 are presented below for a business that employs the…

A: Value of inventory = lower of cost and market value

Q: Define the following terms: inventory conversion period, averagecollection period, and payables…

A: Inventory conversion period: The time between the day when the materials are purchased and the day…

Q: During a period of rising prices, which U.S. GAAP inventory method reports the most current…

A: Definition:

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…

Q: Which of the following is false? Select one: a. Day's sales in inventory is equal to the average…

A: The correct option is part (b), that is higher day’s sales in inventory means that inventory is less…

Q: In times of inflation (normal), the LIFO inventory method has ……………….. compared to FIFO:     a)…

A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…

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.