Which inventory valuation method would yield the lowest cost of goods sold in periods of rising prices? O FIFO O Weighted-Average O None of the answers O Specific identification

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: Which of the following statements about the use of the FIFO assumption is NOT true?   a.   The…

A: Solution: "The FIFO assumption produces inventory asset values that are based on older purchase…

Q: Which inventory valuation method would yield the lowest cost of goods sold in periods of rising…

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

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: 7 During a period of steadily rising prices, which one of the following inventory valuation methods…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: 28-Which of the following element of cost is important in calculating the cost of closing inventory?…

A: Closing inventory is amount remaining unsold at the end of the period.

Q: Under which inventory cost flow assumption is the oldest cost of inventory items likely to remain on…

A: Correct option is LIFO

Q: A company records inventory at gross invoice price. Theoretically, how should the following affect…

A: Solution: Interest on inventory loan do not affect cost of inventory, it is working capital loan…

Q: 5. If a unit of inventory has declined in value below original cost, but the market value exceeds…

A: The procedure of determining the actual value of inventories at the end of the year is known as…

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 would using the FIFO inventory costing method produce higher inventory account balancesthan the…

A: Inventory is one of the important asset for the business. Valuation and management of inventory is…

Q: A retail method of inventory estimation that considers net mark-up but excludes net markdown in…

A: For inventory valuation in the case of retail inventory, the various methods are used such as :…

Q: question 7 In a period of rising prices, the inventory method which tends to give the highest…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Which of the following is false regarding the LIFO method of inventory valuation? a. The material…

A: Last-In-First-Out method(LIFO) is one of the method of inventory valuation where units sold are…

Q: Choose the statement which is correct. Assume that inventory prices are rising. Select one: a. The…

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

Q: During times of inflation, which of these inventory accounting methods is best for cash flow? JUST…

A: given information   need to find the incorrect statement in the below-given options given in the…

Q: Why does Target feel that the retail inventory method will result in inventory beingvalued at the…

A: LCM (Lower of Cost or Market) approach:   It is an approach that values the inventory at historical…

Q: 10.In periods of rising prices (inflation), the use of which of the following inventory cost flow…

A: Under first in first out method, the goods which are brought into the inventory first are sold first…

Q: If the inventory is valued at cost and the price level is steadily increasing, which type of…

A: Under FIFO, goods that are purchased initially are sold first, however, under LIFO it is assumed…

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 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: 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: Which of the following statements is incorrect?

A: Cost of Goods Sold: Cost of Goods sold is the Cost of the items that are sold it is calculated for…

Q: Under which method of inventory valuation, the average price used for valuation of goods issued is…

A: Inventory is the material in which the business deal. It is a very important component of company…

Q: 38. In a period of falling prices, the use of which inventory cost flow method would typically…

A: Inventory valuation is the method of valuing inventory at the end of the accounting period.…

Q: The gross profit method and retail inventory method C Are both estimates of ending inventory and…

A: In company, there is a requirement of valuation of the inventory to find out the cost of the goods…

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: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…

A: Inventory management refers to the valuation of inventory in three ways FIFO, LIFO and weighted…

Q: Which of the following statement is not valid as it applies to inventory costing method?  A) If…

A: The correct answer is Option (d)

Q: Which inventory valuation approach comes closest to having COGS represent the costs the firm most…

A: Under average cost, Inventory and COGS value at the average price during the year. Under FIFO,…

Q: Which one of the following statements is true? a. Under conditions of rising prices, the LIFO…

A: Step 1    Last in, first-out (LIFO) is inventory method in which the costs of the most recent…

Q: Which inventory cost flow assumption would consistently result in the highest income in a period of…

A: Inventory valuation is done at the end of the accounting period and different inventory valuation…

Q: Which of the following concept is true about the advantage of FIFO inventory valuation method? a. No…

A: Solution: - First-In-First-Out is an inventory costing method is used for valuation of inventories.…

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: What is the dollar-value method of LIFO inventory valuation?What advantage does the dollar-value…

A:

Q: 8. The lower of cost or market rule for inventory valuation can be used in conjunction with the…

A: Inventory means the stock of goods in which the businessmen deals. Inventory is always valued at…

Q: Under which method of inventory valuation, do the older goods are issued out first? a. First In…

A: Inventory valuation - It is the monetary amount associated with the inventory at the end of…

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…

Q: Which of the following statements about the use of the FIFO assumption is NOT true? a.The FIFO…

A: In FIFO method  the opening  and earliest goods will be sold first.

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.