What is true in explaining ABC analysis? This process divides items into three classes according to their inventory level Class A items normally have the least dollar usages Class B and class C account for most of inventory items but not dollar usages  Class C accounts for the largest dollar usage of any class   Which one of the following is a reason to have small inventories? To improve customer service To reduce ordering costs To reduce equipment setup costs To reduce interest expense or opportunity costs

Q: You work for a CPA firm that has been hired by Widget Tek, a merchandising company that is getting…

A: LIFO: Under this method, ending inventory is valued at the old cost. FIFO: Under this method, ending…

Q: AD, Inc. uses the LIFO-lower of cost or market method to value inventory. If the inventory value is…

A: For financial reporting purposes, will value the inventory in accounting at lower prices or on the…

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

A:

Q: The level of inventory a company maintains has important economic consequences, and it involves…

A: Ending inventory refers to the inventory which is left at the end of the accounting period. This…

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: Mocha Company uses the lower of cost or net realizable value method to value inventory. Data…

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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: A home improvement store, like Lowe’s, carries the following items:Required:1. Compute the total…

A: Inventory valuation refers to monetary amounts that related with the merchandise in the stock toward…

Q: S6-2 Determining inventory costing methods Ward Hardware does not expect costs to change…

A: Perpetual Inventory System: Perpetual Inventory System refers to the continuous accounting system…

Q: Cheryl believes that companies report cost of goods sold and ending inventory based on actual units…

A: Cost of goods sold: Cost of goods sold is the accumulate total of all direct cost incurred in…

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

A: Computation of Income: Gross Profit = Sales – COGS COGS = Opening Inventory + Purchases – Closing…

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

A: Step 1 “Since you have posted a question with multiple questions, we will solve the first question…

Q: Which one of the following is not a disadvantage of the specific identification method of inventory…

A: Under specific identification methods of inventory, specific inventory movement is measured. So it…

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

A:

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: 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: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…

A: Definition:   LIFO: Under this inventory method, the units that are purchased last are sold first.…

Q: If the business purchases goods for resale purposes, such purchases are charged to? a. Expenses…

A: As posted multiple independent questions we are answering only first question kindly repost the…

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: Why do you think a company would ever choose to use perpetual LIFO as its costing method? It is…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Keeping track of inventory and keeping carrying costs down.  How do you think those issues would…

A: If business organized their inventory management system, the warehousing cost tends to be reduced…

Q: Which company takes longer to sell its inventory? Support your answers with figures.

A: Number of days in inventory = 365 days * ((Opening inventory + Closing inventory)/2)/Cost of goods…

Q: The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based…

A: The above-mentioned inventory ordering alternatives are used by organizations as per their order…

Q: CVP analysis makes all of the following assumptions except     a change in volume is the only…

A: In order for a CVP analysis to be accurate, certain assumptions must be met. These assumptions are:…

Q: JFC Corporation values its inventory by using retail method:   1. How much is the ending inventory…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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

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Q: b order to attract investors and borrow on attractive terms, a company would use in times when…

A: When the cost of inventory is raising, the cost of holding old stock will get higher.  The inventory…

Q: Ward Hardware does not expect costs to change dramatically and wants to use an inventory costing…

A: Perpetual Inventory System is an accounting system of valuing the inventory where there is a need…

Q: What does the EOQ decision model help managers do? 2- Why are companies using just-in-time…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An inventory system that organizations use to increase efficiency and decrease waste is ________.…

A: Ans. There are few business practices which are followed after researches and are studied upon about…

Q: Inventory management is an important aspect of retail strat- egy. For example, it is important to…

A: Reorder point is that stock quantity which should be ordered in order to cover up the time in which…

Q: A company that uses a just in time inventory system:   A)  has finished goods inventory on hand at…

A: The JIT inventory system provides more efficient use of working capital and enhances cash flow

Q: Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific…

A: Inventory is the accounting of commodities, component components, and raw materials used or sold by…

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: Select one: A. Economic Order Quantity (EOQ) B. Safety stock C. Order point D. None of the a

A: Ordering cost is cost incurred when an order is created and processed. Carrying cost is the cost of…

Q: 1. Inventory should be stated at (a) Lower of cost and fair value. (b) Lower of cost and net…

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

Q: Journal entries for recording revenue and costs for service provider. For a traditional…

A: Prepare journal entries for the service companies:

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: 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: 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…

Q: Which one of the following is a disadvantage of Mass Production system? a. Higher level of inventory…

A: The production systems are classified into three. They are: Job production Batch production and…

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.