Explain considerations for businesses while developing and selecting their Inventory system from FIFO, LIFO and Weighted Average. You need to explain the reason for choosing of the efficient and appropriate inventory system according to the nature of a business, industry regulations, and the standards in Australia.

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: 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: Sales revenue is generated by the sale of inventory. Companies can choose between the perpetual and…

A: Introduction: All product and service sales are included in sales revenue, although they are not…

Q: Max Company has chosen to use an allowance account. When the cost of goods sold method is used with…

A: Full form of NRV is Net Realizable Value.

Q: Discuss the factors affecting a company’s choice of inventory method

A: An inventory valuation allows a company to provide a monetary value for items that make up their…

Q: Task description: Explain considerations for businesses while developing and selecting their…

A: First-in-first out(FIFO): As the name suggests that the oldest inventory or purchases will be sold…

Q: State the standard method of determining the cost of goods sold by a retailing or a wholesaling…

A: The cost of goods sold includes the total cost of goods sold include the cost of goods that are sold…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: The inventory management system mechanism involves the efficient management of the storage of goods…

Q: Identify and explain the inventory asset and cost flows of a merchandising company.

A: Stock or stock is the goods and services a corporation keeps for the final resale intent. Inventory…

Q: Which of the following costs do not come under inventory carrying cost calculation? Investment in a…

A: The ideal order quantity for a corporation to purchase in order to minimize inventory costs is known…

Q: A cost management system provides ________. A) measures of inventory value and cost of goods sold…

A: Management accounting refers to the provision of the financial as well as non- financial decision…

Q: Which of the following companies would be more likely to use the specific identification inventory…

A:

Q: Hugo Ltd., follows the LIFO system. From the particulars given below, ascertain the cost of sales…

A: Last-in, first-out method: Under the last-in-first-out method goods that are brought at later dates…

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: Explanation consideration for business while d a inventory system from  lifo fifo and weighted…

A: LIFO (Last in first out) LIFO is used to place an accounting value of inventories. It is based on…

Q: Which of the following methods of inventory control will be used in case of a business whose…

A: Inventory control is a process of managing stock at the warehouse. It involves the optimization of…

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: What inventory systems do you know are used in a buying and selling business?

A: The inventory systems popularly used are the  1) Perpetual inventory system  2) Periodic inventory…

Q: Every company or organisation placed inventory as an important aspect for their  businesses. Discuss…

A: Inventory can be defined as assets held for sale in the ordinary course of business or in the…

Q: A small manufacturing or trading concern maintains its inventory on which system   a. Average…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: The inventory accounts of a manufacturer are ________________, _____________________and…

A: The inventory accounts of a manufacturer are _______Raw material inventory_, Work in process…

Q: What is the method of accounting of inventory in which the cost of goods is recorded each time a…

A: The cost of goods included the cost of goods that are sold during the period.

Q: compute the ending inventory using the retail method. Explain the steps that you would use in…

A: Inventory is the good which are the products which company have for the purpose of sale by the…

Q: Which one of the following groups of items best identifies various types of inventory opportunity…

A: Inventory Opportunity cost includes the costs to order and hold inventory, additionally on…

Q: Which of the following methods is appropriate for a business whose inventory consists of a…

A: Inventory valuation methods are different methods used to allocate the value to the inventory. They…

Q: Explain how a retailing firm would determine the cost of goods sold during an accounting period.

A: Retailing firms are those firms that are run for the prime purpose of earning profits. The cost of…

Q: The GAAP is an acronym that represents which of the following?Choose one answer.a. Principles for…

A: GAAP refers to as the Generally Accepted Accounting Principles.

Q: discuss which inventory valuation methods would most likely be used by the following businesses and…

A: Inventory valuation means identifying the stock in an organisation and finding its financial value…

Q: Complete an inventory valuation using both the LIFO and FIFO methods and make an educated choice…

A: FIFO Method Under FIFO method, the goods which are purchased first are sold first LIFO Method Under…

Q: QUESTION 3 Which of the following financial statement line items would be found on a manufacturer's…

A: Cost of goods sold and finished goods inventory could be found in merchandiser financial statements

Q: Consider the inventory of a retailer. Describe how the qualities of information presented in this…

A:

Q: Which one of the following inventory management approaches determines the finished goods inventory…

A: Introduction: To run the day-to-day business, the inventory management system is essential or as it…

Q: identify the correct statement from the following: Weighted average method can be used for inventory…

A: Weighted average valuation for inventory method means a method in which assign average cost of…

Q: In comparing the accounts of a merchandising company with those of a service company, what…

A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…

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: For each statement below, identify whether the statement applies to the periodic inventory system,…

A: Periodic Inventory System-  It refers to the system under which the physical count of the quantity…

Q: How do you find an inventory report for manufacturers?

A: Answer :- The inventory of manufacturer is reported in "Current assets" part of the balance sheet of…

Q: Indicate whether the following financial statement items apply to a manufacturer, a merchandiser, or…

A: The manufacturing business involves the production of goods. The merchandise business includes the…