Indicate whether a company interested in minimizing its income taxes should choose the FIFO orLIFO inventory costing method under each of the following circumstances.a. Declining costs _____b. Rising costs _____

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: When using a perpetual inventory system and the weighted-average inventory costing method, when does…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: What effect does each method used have on the firm’s reportedprofits? On ending inventory levels?

A: Answer: The following is the effect that each method of inventory on firms reported profits:…

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: Generally accepted accounting principles require that the inventory of a company be reported at:…

A: The inventory can be reported at various values as historical cost, market value, net realisable…

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: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Inventory can be defined as a form of asset which is held by a business firm for resale purposes.…

Q: Which of the following should not be taken into account when determining the cost of inventory? a.…

A: Solution:- The following should not be taken into account when determining the cost of inventory as…

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

A: a.

Q: Which of the following is not permitted as a cost of inventory?

A: Which of the following is not permitted as a cost of inventory? Answer - b) Storage costs

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

A: USING OF LIFO METHOD

Q: The Rider Company uses the gross profit method to estimate ending inventory and cost of goods sold.…

A: In order to accurately estimate the ending inventory under the gross profit method, the cost…

Q: Hunter, Inc. uses the LIFO method of inventory costing and is facing the possibility of a LIFO…

A: Concept : It occurs when a company using LIFO inventory valuation method sells more goods old stock…

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

A:

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

A:

Q: Which method of inventory valuation is not allowed when calculating profit for tax purposes? Select…

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

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.…

A: Under the FIFO and LIFO, the obtained cost of goods sold can be higher or lower than the actual…

Q: The following example was provided to encourage the use of the LIFO method. In a nutshell, LIFO…

A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…

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

A: Answer:LIFO is the correct option

Q: When preparing interim financial statements, what two methods can companies utilize to estimate cost…

A:

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Introduction:

Q: he economic order quantity is not affected by the a. cost of purchase-order forms. b. safety stock…

A: The economic order quantity (EOQ) is a company's optimal order quantity for minimizing its total…

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: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?…

A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross…

Q: A firm utilizes a periodic inventory cost system with a Last-In, First-Out (LIFO) cost flow…

A: LIFO Method: Last in, first-out (LIFO) is a system of accounting for inventory sales in which the…

Q: Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is…

A: Net realizable value: Net realizable value is the net amount of receivables which a business expects…

Q: During a period when inventory costs are steadily increasing, which of the following is true? O a.…

A: FIFO considers the cost of initial purchases as the cost of goods sold and the later purchases as…

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

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: Which cost flow assumption generally results in the highest reported amount for ending inventory…

A: First-in-First-Out method: In First-in-First-Out method, the costs of the initially purchased items…

Q: Inventory Costing Method.

A: Methods of issuing the Material from store: THE Material purchased at first entered into the store…

Q: he management of Milque Corp. is considering the effects of various inventory-costing methods on its…

A: Introduction:- The following four inventory valuation methods used as follows under:- First-In,…

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

A: Three most common method of inventory valuation are  Fifo method Lifo method Weighted average…

Q: When a company determines that the net realizable value of its ending inventory is lower than its…

A: Lower of cost and net realizable value: The lower of cost and net realizable value is a method which…

Q: Baxter Corporation has been using FIFO during a period ofrising costs. Explain whether you would…

A: Requirement a:   If Baxter have been using LIFO method during rising costs, the net income the…

Q: During periods of increasing costs, the use of the FIF0 method of costing inventory will result in a…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: In order to get the lowest profits possible in periods of rising inventory costs, the company should…

A: Inventory costing is an accounting concept that has direct consequence on company’s gross profit and…

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: a. Income manipulation is difficult under LIFO. b. Accounting principles do not require that the…

A: The right answer is option b. Accounting principles do not require that the inventory cost flow…

Q: What is the purpose of the lower of cost or net realizable value rule?

A: lower of cost or net realizable value rule(LCNRV method):Inventory should be valued at the lower of…

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.