PAS 2 provides clearcut principles concerning measurement of inventory: Paragraph 9 provides that inventories shall be measured at the lower of cost or net realizable value or also known as LCNRV.

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

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Q: Explain the 3 important types of Inventories

A: Explain the 3 important types of Inventories. 1. Direct raw material inventory 2. Work-in-progress…

Q: Do the terms LIFO, FIFO, and Weighted Average have anything to do with the actual physical flow of…

A: LIFO stands for Last in First out which means that the accounting will be done in such a manner that…

Q: What is the amount of Inventory to be presented at the Balance Sheet date using the LCNRV Individual…

A: Solution Concept FIFO method :  Under this method the goods in opening inventory is sold first LCNRV…

Q: IFRS and GAAP are similar for all of the following inventory accounting standards except IFRS…

A: IFRS allows the inclusion of overhead in inventory. In IFRS the use of LIFO cost flow assumption is…

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: How is the allowance for the inventory write-down shown in the statement of financial position? a.…

A: Inventory means the stock of goods in hand . Goods means is the thing in which the business deals…

Q: 27.IAS 2, Inventories requires that the lower of cost and net realizable value shall be applied   a.…

A: Introduction:- Inventories are valued at cost or net realizable value (Whichever is lower) Cost of…

Q: 9. An inventory accounting policy that should be disclosed in a summary of significant accounting…

A: It is a footnote that accompany company financial statements. Such disclosure should form part of…

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: For commercial reasons, a weighted average and inventory system from lifo fifo should be considered.

A: The LIFO (Last in, first-out) The LIFO accounting method is used to value inventory. This method is…

Q: i. Determine the cost assigned to the ending inventory by using FIFO method of inventory valuation…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

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: Define the following assertions for inventory: 1) Existence 2) Completeness 3) Valuation and…

A: Audit Inventory:-It is a process of checking the inventory records in the data with a physical count…

Q: The primary purpose for using an inventory cost flowassumption is to:a. Parallel the physical flow…

A: Inventory cost flow assumptions: These are the assumptions including FIFO, LIFO, and weighted…

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: 8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and…

A: The cost of products available for sale is the cost of raw materials and labor used to make goods…

Q: What is the amount of Inventory to be presented at the Balance Sheet date using the LCNRV Individual…

A: Solution Concept FIFO method :  Under this method the goods in opening inventory is sold first LCNRV…

Q: According to the Conceptual Framework, physical count of inventory is an example of

A: A physical inventory count is an approach where company's staff is involved in counting company's…

Q: Which method tracks the actual physical flow of goods and each item of inventory is marked, tagged,…

A: The correct option in no. 1 question is d. Specific identification method

Q: Inventory should be measured at lower of fair value and net realizable value of the inventory.

A: The IAS 2 suggests the requirement for the reporting of the inventories. This states that the…

Q: Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration…

A: Overstatement of ending inventory will reduce the cost of goods sold and also increase the opening…

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: Give TWO examples of methods of inventory accounting. (With explanation)

A: Inventory accounting : Inventory accounting is a method used to ascertain the cost of inventory.…

Q: Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of…

A: The NRV of the inventories is estimated in the usual course of the business and costs related to…

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: Complete the table below for the transactions provided using the following methods of inventory…

A: Working (FIFO)   Computation

Q: Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of…

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Q: When determining gross profit, only the following items must be taken into consideration:    A.…

A: Gross Profit is the revenue earned by the company after subtracting the cost associated with earning…

Q: 1. Before inventory purchases are recorded, the receiving report should be reconciled to what…

A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…

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

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Q: According to our authors, define “cost” as it relates to determining the value of inventory. Provide…

A: Value of inventory is the cost associated with the company's inventory at the end of a reporting…

Q: According to the GAM for NGAs, this shall be used for large numbers of items of inventory that are…

A: Inventory Management System- Inventory management system could include software system or some kind…

Q: The primary objective of inventory accounting is to a. Determine the peso amount at which inventory…

A: The accounting for inventory is something which is done with regard to maintenance or reporting of…

Q: Briefly contrast the accounting procedures in perpetual andperiodic inventory systems.

A: Following are the differences between accounting procedures in perpetual and periodic inventory…

Q: Which of the following inventory method measures most closely the current cost of inventory?   a.…

A: The inventory valuation is carried out at the end of the accounting period. The different inventory…

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