Which of the following should be included in the physical inventory of a company? A) Both goods in transit to and from another company shipped FOB shipping point. B) Goods held on consignment from another company. C) Goods in transit from another company shipped FOB shipping point. D) Goods in transit to another company shipped FOB shipping point.

Q: Which of the following items would be included in the inventory account of a manufacturing concern?…

A: The inventory is the cost of goods that are available to be sold during the period.

Q: Which of the following should be included in the physical inventory of a company? O A. Goods held on…

A: Solution: "Goods in transit from another company shipped FOB shipping point" should be included in…

Q: Peosta Company identifies the following items for possible inclusion in the taking of a physical…

A: Ans  a)Goods are shipped by Peosta to another company Excluded from inventory taking since such…

Q: What is the treatment of the following items in connection with the retail inventory method? j.…

A: Moved in costs will be costs collected during the upstream creation measures inside an organization.…

Q: rchases = Cost of goods available for sale – Ending inventory = Cost of goods sold   (A) How does…

A: Cost of goods sold is the cost incurred in producing or purchasing the goods sold in the current…

Q: Which of the following statements is correct in the context of the Income Statement prepared by a…

A: The Income Statement is prepared in order to show the result of operating a business for a period of…

Q: 1.                 is not considered as an Inventory A) Assets intended to be sold in the normal…

A: 1 : Equipment used in the manufacturing process whether directly or indirectly cannot be considered…

Q: Explain "the inventory process sits between the revenue and the purchasing processes. the subject…

A: Inventory management is defined as a process of ordering, managing, storing, and implementing the…

Q: True or False Merchandise inventory consists of products that a company acquires to resell to…

A: Merchandise inventory refers to inventory held by the company.

Q: Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company…

A: Periodic inventory is a system of inventory valuation where the business’s inventory and cost of…

Q: hich of the following accounts is unique to a merchandising entity that uses the periodic inventory…

A: The periodic inventory system does not record each transaction at the time they occurred. It…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: Which of the ff needs an adjustment to the A/R account of ABS company? a. goods in transit of the…

A: Under the FOB destination point sale, the seller can record its sales only after the buyer takes the…

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: A consignee is an agent who sells the goods Received on consignment and has no economic control over…

Q: Which of the following needs an adjustment to the accounts receivable account of ABC Company? a.…

A: Accounts receivable are created by an organisation when it records sales on credit. The accounts…

Q: Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will…

A: The letter FOB means Free On Board. Those goods that are placed free onboard the carrier by the…

Q: The following costs are included from the cost of inventories and recognized as expenses in the…

A: Costs of Inventory includes all costs which are incurred for bringing the inventory to the present…

Q: When goods in transit are shipped f.o.b shipping point they shoule be included in the inventory of…

A: Solution: Goods in transit shipped FOD destination should belongs to buyer as they once shipped…

Q: Listed below are several terms and phrases associated with inventory measurement. Pair each item…

A: FIFO : First-in-first-out LIFO : Last-in-first-out Gross method : The sales / purchases are recorded…

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

A: As per IAS 2,  Inventory Cost of Inventory  consists  of  1. Purchase cost 2.conversion cost 3.other…

Q: A manufacturer shipped merchandise to a retailer on a consignment basis. If the merchandise is…

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: .Which of the following inventory items is/are included in the year end inventory of an entity's…

A: Concept Freight paid on goods sold are freight outward and treated as selling expense Goods in the…

Q: The costs to be accounted for consist of which of the following? costs added during the period…

A: >Process Costing includes costing for each process  accounted for as "Work In Process" accounts.…

Q: Which of the following should be included in the ending inventory of a company? Goods held on…

A: FOB(Free on board) shipping vs FOB destination, in the case of FOB shipping the title of ownership…

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: The purchase obligation is yet to take place, so, neither an asset nor a liability is created.…

Q: Which of the following items should be included in a company's inventory at the balance sheet date?…

A: Inventory is the current asset which is being held by the entity for the purpose of sale.

Q: Which of the following would not be reported as inventory? A. Goods out on consignment B. Goods in…

A: Hi student Since there are multiple question, we will answer only first question.

Q: Which one the following types of cost is most likely to be included in determining the cost of…

A: Freight in cost is concerned with the inventory value and should be included in determining the cost…

Q: Which of the following statements about FIFO is true? Select one: a. All of the statements are…

A: FIFO is the First-in and First-out method of valuation of Inventory. Under this method, it is…

Q: Merchandise inventory is * reported under the classification of O Property, Plant, and Equipment on…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Under periodic inventory system, freight-in on merchandise purchases should be charged to the *…

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

Q: You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below:…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: When a company uses LIFO for external reporting purposes FIFO for internal reporting pusposes, an…

A: LIFO reserve: LIFO reserve refers to the difference in the value of inventory, between the goods…

Q: You are comparing two companies, Ying Ltd and Yang Corporation, in the same industry. Ying focuses…

A: Inventory: Inventory can be defined as the current assets of the company that includes the raw…

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: In what ways are the inventory accounts of a retailing companydifferent from those of a…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Which of the following items would not appear in the operating section of the multiple−stepincome…

A: In this question covered the concept of Multiple Income Statement .  Multiple Income Statement…

Q: The journal entry to record the payment of freight cost under the perpetual inventory system is as…

A: Given transaction is: Payment of freight cost under the perpetual inventory system

Q: Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Hemming Co.…

A: FIFO stands for “First-In, First-Out”. It is a method used for cost flow assumption purposes in the…

Q: Which of the following statements is true for a company that uses a periodic inventory system?…

A: Only inventory account is used for all the inventory transactions in the perpetual inventory system.…

Q: Under what circumstances do generally accepted accounting principles permit the use of an inventory…

A: Solution-   688-8-3DQ SA -3946 SR- 2606     Generally accepted accounting principles allow the…

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.