Explain the application of the cost principle to an item in the ending inventory.

Question

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Answer 1

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 2

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 3

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 4

Question

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

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Answer 5

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

Answer 6

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.

Answer 7

Chapter 7, Problem 3Q

To determine

Explain the application of the cost principle to an item in the ending inventory.

Answer 8

Expert Solution & Answer

Explanation of Solution

Inventory refers to the raw materials, work-in process, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date.

Ending Inventory: It represents the quantity and price of the goods unsold and laying at the store at the end of a particular period.

The application of the cost principle to an item in the ending inventory is explained as follows:

The measurement of the ending inventory amount is managed by the cost principle. The ending inventory represents the quantity and price of the goods unsold, and laying at the store at the end of a particular period. Hence, the ending inventory is determined in terms of units and cost of each unit is applied to the ending inventory amount.
Under the cost principle, the unit cost is determined by adding up all costs incurred (for example: $10 + $5 + $12) in obtaining one unit of the inventory item.