In order to get the lowest profits possible in periods of rising inventory costs, the company should use which of the following inventory costing methods? Group of answer choices Average cost Specific identification FIFO LIFO

Q: During a period of steadily rising costs, the inventory valuation method that yields the highest…

A: LIFO: Last in First Out- Under LIFO inventory valuation, units purchased last are sold first. As the…

Q: What is the cost of ending inventory under the weighted average costing method?

A: Calculation of cost of units issued under FIFO method: Date Units issued Issue cost      5/15…

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 variations of the reail inventory method would generally result in the lowest…

A: FIFO is a method used to value inventories. In First-In-First-Out (FIFO) method the cost of the…

Q: When inventory unit costs are increasing: Group of answer choices a)FIFO will result in higher…

A: FIFO refers to the method of inventory costing where items purchased first are sold first.

Q: Which one of the following is a reason for the just-in-time inventory policy? Select one: O A. The…

A: Just in time inventory policy is a policy of inventory management the main purpose of which is to…

Q: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means…

A: As per our protocol we provide solution to the one question only or to the first three sub-parts…

Q: Which of the following companies would be more likely to use the specific identification inventory…

A:

Q: Which of the following is an advantage of the periodic inventory system?A. frequent physical…

A: When a physical inventory count is performed, a periodic inventory system just updates the ending…

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: Morgan Industries is comparing and contrasting its ending inventory value in terms of the three…

A: Answer : Option b. Weighted Average inventory cost method is correct answer.   Weighted Average cost…

Q: In times of decreasing prices, LIFO will result in ____ costs of goods sold and _____ ending…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: For each item below, indicate whether FIFO or LIFO will generally result in a higher reported amount…

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

Q: Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the…

A: Each inventory valuation methods possesses its own uniqueness that will affect the financial…

Q: Which of the following variations of the retail inventory method would generally result in the…

A: Rising prices basically means the situation where the prices of inventory keep on rising with each…

Q: The number of units that a company should add to inventory with each order to minimize the total…

A:

Q: In a period of rising prices, the inventory cost allocation method that tends to result in the…

A: In the period of rising prices, method resulting in highest net income would be the method under…

Q: Give examples of costs included in annual carrying costs of inventory when using the EOQ decision…

A:

Q: Which of the following might be attributed to efficient inventory management? Select the correct…

A: All of the choices given

Q: For all short exercises, assume the perpetual inventory system is used unless stated otherwise.…

A: Inventory Costing Method:   Under inventory costing method, the flow of cost of inventory is…

Q: Smmons Inc. uses the lower of cost on meket method to valesinventory that is accounted or using he…

A: Inventory valuation method includes: First-in, First-Out (FIFO) Last-in, Last-Out (LIFO) Average…

Q: Identify the following as applying more to lean (L) or to traditional (T) businesses. Inventory…

A:

Q: During a period of rising inventory costs and stable output prices, describe how net income and…

A: First in first out Method (FIFO) First in first out method is one of the popular method which was…

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: 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 is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: Overstating ending inventory in the current year causes net income in the current year to be…

A: 1. True 2. False The weighted-average cost includes both beginning inventory and purchases and is…

Q: Which of the following is an advantage of the periodic inventory system? frequent physical inventory…

A: Periodic inventory system is a system in which cost of goods sold is determined at year end. Value…

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

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: During a period of falling prices, which of the following inventory methods generally results in the…

A: There are 3 types of methods for inventory valuation: a.FIFO b. LIFO c. Weighted average FIFO: In…

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

A: Total cost = Inventory Quantity x  Cost per Unit Total Market = Inventory Quantity x Market Value…

Q: Samsung Electronics reports the following regarding its accounting for inventories. Inventories are…

A:

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

A: In case of LIFO method, most of the cost of goods sold is calculated at the latest price since the…

Q: During periods of rising costs, which inventory costing method produces the highest gross profit?

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: What is true in explaining ABC analysis? This process divides items into three classes according to…

A: Hi, since there are multiple questions posted, as per our guidelines we will answer the first…

Q: In some instances, accounting principles require a departure from valuing inventories at cost alone.…

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

Q: What factors might impact on the management’s selection of an inventory cost flow assumption? In…

A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: Which cost flow assumption generally results in the highest reported amount of net income in periods…

A: Solution: Under FIFO method, inventory is valued at latest purchase cost. Therefore in period of…

Q: Which one of the following is a reason for the just- in-time inventory policy? Select one: A. The…

A: Just in time inventory policy means purchasing the inventory when ever required and not maintaining…

Q: Which cost flow assumption generally results in the highest reported amount of net income when…

A: FIrst in first out or FIFO cost flow assumption provides highest net income when inventory prices…

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…

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.