Inventory elements: derecognition and measurement At the time of their exit, the inventory and other fungible assets are measured and recorded in accounting through applying one of the following formulas: . First In-First Out ● Weighted Average Cost 1 - FIFO - WAC -LIFO ● Last In - First Out Case study no. 1: At the beginning of January N entity A has an initial flour inventory of 200 kg evaluated at an actual cost of 46 lei/kg. The following transactions happen during the month with regard to the flour inventory: . 07.01.N: acquisition 500 kg, actual cost 47 lei/kg. . 09.01. N: acquisition 300 kg, actual cost 49 lei/kg: ● 12.01. N: consumption 600 kg: ● 17.01. N: consumption 100 kg: ● 20.01. N: acquisition 200 kg, actual cost 55 lei/kg: 24.01. N: consumption 400 kg; ● ● 27.01. N: acquisition 700 kg, actual cost 57 lei/kg: 30.01 N consumption 750 kg

Inventory elements: derecognition and measurement At the time of their exit, the inventory and other fungible assets are measured and recorded in accounting through applying one of the following formulas: . First In-First Out ● Weighted Average Cost 1 - FIFO - WAC -LIFO ● Last In - First Out Case study no. 1: At the beginning of January N entity A has an initial flour inventory of 200 kg evaluated at an actual cost of 46 lei/kg. The following transactions happen during the month with regard to the flour inventory: . 07.01.N: acquisition 500 kg, actual cost 47 lei/kg. . 09.01. N: acquisition 300 kg, actual cost 49 lei/kg: ● 12.01. N: consumption 600 kg: ● 17.01. N: consumption 100 kg: ● 20.01. N: acquisition 200 kg, actual cost 55 lei/kg: 24.01. N: consumption 400 kg; ● ● 27.01. N: acquisition 700 kg, actual cost 57 lei/kg: 30.01 N consumption 750 kg

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Description: Inventory elements: derecognition and measurementAt the time of their exit, the inventory and other fungible assets are measured and recorded in accountingthrough applying one of the following formulas:First In - First OutCFIFOWACWeighted Average Co

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...

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