The weighted average inventory cost flow method is the least used of the inventory costing methods. True OFalse During periods of increasing costs, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. True False

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: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

A:

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

A: FIFO:  Under this method, the inventory that is bought first is to be sold first. Thus the ending…

Q: Which of the three methods of inventory costing -FIFO, LIFO, or weighted average cost - will in…

A: FIFO - Inventory purchased first is assumed to be sold first. LIFO - Inventory recently purchased is…

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

A: Using LCM method, the inventory is valued at lower of the value between market value and cost value.…

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Please answer in detail and tell me why other options are incorrect........   The most useful…

A: Following methods are used to find the valuation of the ending inventory 1) FIFO - First in first…

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: Lower-of-Cost-or-Market Method On the basis of the data shown below:   Item Inventory Quantity…

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

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

A: Commodity Cost per unit Market Value per unit Lower of Cost or Market  JFW1 $37  $39  $37   Saw9…

Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

A: a. The ethical issue involved in the situation is, use of cost-of-goods-sold method to write down…

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 method: In this method taking the values which ever is less either market…

Q: Under the lower of cost or market inventory valuation rule, market value of inventory is defined as:…

A: Market value is the price of an item/product prevailing in the market on the given date.

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: 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: The weighted average inventory cost flow method is the least used of the inventory costing methods.…

A: When the inventory is valued at by calculating the weighted average rate per unit for the purchase…

Q: If costs are declining, will the LIFO or FIFO method of inventory valuation yield the lower cost of…

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

Q: Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

A: GIVEN    Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

Q: An advantage of the weighted average inventory method is that it smooths out erratic changes in…

A: Inventory accounting is the branch of accounting concerned with the valuation and accounting for…

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: Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Cost per Market Value…

A: The principle is inventory should be valued at lower or cost of reliasable value which ever is lower…

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: 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: The table below lists financial statement items that may be affected by the use of either the FIFO…

A: Rising costs is the situation when the prices keeps on increasing with time.

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: 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 costs are rising, which of the following will be true?a. The cost of goods sold will be greater…

A:

Q: 1) If the ending inventory is to be valued at approximately lower-of-cost-or-net realizable value,…

A: Cost to retail ratio may be defined as the division of cost of goods available for sale and retail…

Q: the ending inventory of a firm is overstated by $49,000, by how much and in what direction…

A: Solution Concept Mathematically Cost of goods sold       =beginning inventory + purchase – ending…

Q: In the immediate write-off approach, under-applied overhead is regarded as: a. an increase in…

A: Underapplied overhead occurs when a company's overhead expenses surpass what it budgets for in order…

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

A: Inventory is also known as Stock which is remaining at the end of year. It is valued by different…

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

A: Option B is correct

Q: If merchandise inventory is being valued at cost and the purchase price is steadily falling, which…

A: Inventory can be valued using many ways such as : FIFO LIFO Weighted Average Average cost

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

A: calculation of value of inventory at lower of cost or market  method

Q: .When applying the lower of cost or net realizable value (LCNRV) method, inventory value reported…

A: As per the lower of cost or net realizable value (LCNRV) method, inventory should be recognized at…

Q: The costs of ending inventory is similar under both periodic and perpetual inventory system if…

A: The given question is related to inventory valuation. The first method of inventory valuation is 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: Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the…

A: Total cost :- JFW1 = 58 x $29 = $1,682 SAW9 = 119 x $15 = $1,785   Total market value :- JFW1 =…

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: The cost of the ending inventory under absorption costing is higher than the cost of ending…

A: The inventory which remains unsold during the accounting period is termed as ending inventory. This…